The Above Table Gives Data for the Nation of South

question 57

Multiple Choice

$\begin{array} { c c c c } \hline \begin{array} { c } \text { Real GDP, } Y \\\text { (billions of 2005 dollars) }\end{array} & \begin{array} { c } \text { Consumption expenditure, } C \\\text { (billions of 2005 dollars) }\end{array} & \begin{array} { c } \text { Investment, } I \\\text { (billions of 2005 dollars) }\end{array} & \begin{array} { c } \text { Government expenditure, } G \\\text { (billions of 2005 dollars) }\end{array} \\\hline 100 & 150 & 150 & 100 \\200 & 200 & 150 & 100 \\300 & 250 & 150 & 100 \\400 & 300 & 150 & 100 \\500 & 350 & 150 & 100 \\600 & 400 & 150 & 100 \\700 & 450 & 150 & 100 \\800 & 500 & 150 & 100 \\900 & 550 & 150 & 100 \\\hline\end{array}$
The above table gives data for the nation of South Hampton. There are no imports into or exports from South Hampton. Aggregate planned expenditure is less than actual expenditure if real GDP is

• A)$700 billion.
• B)more than $700 billion.
• C)less than $700 billion.
• D)at the equilibrium level.
• E)Both answers A and C are correct.

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Definitions:

Accident

A logical fallacy that occurs when an argument mistakenly applies a general rule to a specific case to which the rule does not appropriately apply.

Fallacy

A logical error or misleading argument often used in reasoning or debate.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance, which is the main constituent of Earth's hydrosphere and the fluids of all known living organisms.

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A shallow pool of water mixed with dirt, creating a muddy liquid, often found on the ground after rain.