(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:

Budget Deficit

The condition in which a nation spends more than it takes in from taxes.

Agricultural Commodities

Products derived from agriculture such as grains, livestock, and dairy that are traded on various commodity exchanges.