The Letters Y, C, I_g, X, and M Stand for GDP

question 146

Multiple Choice

The letters Y, C, I_g, X, and M stand for GDP, consumption, gross investment, exports, and imports respectively.Figures are in billions of dollars.Ca = 25.75(Y - T ) Ig = Ig0 = 50
Xn = Xn0 = 10
G = G0 = 70
T = T0 = 30
Refer to the above information.If the economy's tax schedule was T = 0.2Y rather than T = T₀ = 30, the equilibrium GDP would be:

• A)$387.3.
• B)$518.5.
• C)$316
• D)$412

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Definitions:

Experimental Evidence

Data or information obtained through controlled trials or experiments to test a hypothesis or theory.

Condorcet Paradox

A voting paradox in which collective preferences can be cyclic (non-transitive), meaning no clear winner can be determined through majority rule in a pairwise election.

Voting System

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Median Voter Theorem

A principle suggesting that the outcome of a majority vote is most likely to represent the preferences of the voter who is in the middle of the political spectrum.