The Table Above Gives Data for the Nation of Pearl

question 111

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.
- The economy is at full employment when real GDP is

• A)$28 billion.
• B)$25 billion.
• C)$34 billion.
• D)$31 billion.
• E)$22 billion.

---

Definitions:

Equilibrium World Price

The price of a good at which the quantity supplied and quantity demanded are equal in the global market.

Domestic Quantity Supplied

The total amount of a product that producers in a country are willing and able to sell at a given price level, within the domestic market.

Domestic Quantity Demanded

The aggregate quantity of a product or service that buyers in a particular nation are ready and capable of buying at a certain price.

Hypothetical Nations

Imaginary or theoretical countries used for the purpose of discussion, analysis, or study in various contexts.