Assume That Equilibrium GDP (Y) Is 5,000

question 154

Multiple Choice

Assume that equilibrium GDP (Y) is 5,000. Consumption (C) is given by the equation C = 500 + 0.6Y. In addition, assume G=0. In this case, equilibrium investment is:

• A)1,500.
• B)2,000.
• C)2,500.
• D)3,000.

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Definitions:

Diaphragm

A large, dome-shaped muscle located at the base of the lungs, playing a crucial role in breathing by contracting and relaxing to allow air in and out of the lungs.

Thoracic Cavity

The part of the body known as the chest cavity, which houses the lungs, heart, and other vital organs.

Vitamin D

A fat-soluble vitamin that is essential for maintaining the health of bones and teeth and supports the immune system, often obtained through sunlight exposure or dietary sources.