The Table Given Below States the Value of the GDP

question 53

Multiple Choice

The table given below states the value of the GDP and the different components of aggregate expenditure for two years.
Table 10.1
$\begin{array}{|c|c|c|c|c|c|c|}\hline & \text { GDP } & \boldsymbol{C} & \boldsymbol{I} & \mathbf{G} & \text { Export } & \text { Import } \\\hline \text { Year 1 } & - & \$ 750 & \$ 110 & \$ 60 & \$ 70 & \$ 50 \\\hline \text { Year 2 } & \$ 1,150 & \$ 930 & \$ 90 & \$ 75 & \$ 125 & - \\\hline\end{array}$
-Refer to Table 10.1. What would be the new equilibrium level of real GDP in year 2 if net exports equaled zero?

• A) $1,205
• B) $1,095
• C) $1,050
• D) $1,170
• E) $1,120

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Definitions:

Declarative

Pertaining to memories that can be consciously recalled, such as facts and events.

Memory

The cognitive process enabling humans and other animals to store, retain, and subsequently retrieve information.

Short-term Memory

The aptitude to keep a minor quantity of data immediately accessible and in an active status for a short time frame.

Capacity

The maximum amount that something can contain or produce.