The Table Given Below Reports the Value of Real GDP

question 20

Multiple Choice

The table given below reports the value of real GDP and its components consumption (C) , investment (I) , exports, and imports for two consecutive years.
Table 10.3
$\begin{array}{l}\begin{array}{|c|c|c|c|c|c|}\hline & \text { Equilibrium } & & & & \\\hline & \text { Real GDP } & \text { C } & \text { I } & \text { Exports } & \text { Imports } \\\hline \text { Year 1 } & \$ 9,350 & \$ 7,500 & \$ 1,350 & \$ 1,800 & - \\\hline \text { Year 2 } & \$ 11,450 & \$ 8,900 & - & \$ 2,350 & \$ 1,600 \\\hline\end{array}\\\text { Assume that government spending is zero for this economy. }\end{array}$
-Refer to Table 10.3. What will be the value of the spending multiplier?

• A) 1
• B) 0.47
• C) 5
• D) 1.25
• E) 2.13

---

Definitions:

Stewardship

The responsible management and care of resources or property, often with a focus on conservation and sustainability.

Planetary Management

The active manipulation and management of a planet's environment and resources to ensure sustainability and habitability for its inhabitants.

Inherent Value

The intrinsic worth of something, independent of its utility or application.

Instrumental Value

Refers to the value that something has as a means to a desired or valued end, not valuable in itself but for what it leads to.