The Table Below Shows the Real Gross Domestic Product (GDP)

question 107

Multiple Choice

The table below shows the real gross domestic product (GDP) , consumption, planned investment, and government purchases for an economy. The aggregate expenditure in equilibrium is _____.

• A) $1,800
• B) $1,900
• C) $2,000
• D) $2,200
• E) $2,300

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Definitions:

Marginal Product

The additional output generated by using one more unit of a particular input, holding other inputs constant.

Inventory

The goods and materials a business holds for the ultimate goal of resale, production, or utilization.

Labor Hours

The total amount of time workers spend working in a given period, typically measured in hours per day, week, or year.

Isoquant

An isoquant is a curve that represents all the combinations of inputs that produce the same level of output in production theory.