The Table Above Gives Data for the Nation of Pearl

question 97

Multiple Choice

$\begin{array} { c c c c } \hline \begin{array} { c } \text { Price level } \\\text { (GDP deflator) }\end{array} & \begin{array} { c } \text { Potential GDP } \\\text { (billions of 2005 dollars) }\end{array} & \begin{array} { c } \text { Real GDP supplied } \\\text { (billions of 2005 dollars) }\end{array} & \begin{array} { c } \text { Real GDP demanded } \\\text { (billions of 2005 dollars) }\end{array} \\\hline 150 & 25 & 34 & 16 \\140 & 25 & 31 & 19 \\130 & 25 & 28 & 22 \\120 & 25 & 25 & 25 \\110 & 25 & 23 & 28 \\\hline\end{array}$
The table above gives data for the nation of Pearl, a small island in the South Pacific.
- If aggregate demand increases so that the quantity of real GDP demanded is $6 billion more at each price level, the new equilibrium real GDP is

• A)$34 billion.
• B)$25 billion.
• C)$31 billion.
• D)$28 billion.
• E)$23 billion.

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Definitions:

Probability of Nonpayment

The likelihood or risk that a borrower will not be able to make the scheduled payments on their debt obligations.

Revenue

The total income generated by a company from its business activities before any expenses are subtracted.

Inventory Shortage Cost

Costs incurred from not having enough stock on hand, including lost sales, backorders, and potentially lower customer satisfaction.

Storage and Tracking

Methods and systems used for keeping track of inventory or assets and maintaining their condition over time.