(Advanced Analysis) If S = −60 + 0

question 33

Multiple Choice

(Advanced analysis) If S = −60 + 0.25Y and Ig = 60, where S is saving, Ig is gross investment, and Y is gross domestic product (GDP) , then the equilibrium level of GDP is

• A) $200.
• B) $320.
• C) $360.
• D) $480.

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Definitions:

Retirement

The act of leaving one's job and ceasing to work, typically due to reaching a certain age or for health reasons.

Investments

Assets or instruments acquired with the intention of generating income or appreciating in value over time.

Contract

A contract that is legally enforceable involving two or more parties.

Investments

Allocation of monetary resources with the intention of securing a return or profit.