The Table Given Below Reports the Value of Real GDP

question 16

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 in an economy.?

-Refer to Table 10.3. To increase the equilibrium real GDP to $12,000 in year 3 in this economy, all else equal to that in year 2, investment would have to increase by:

• A) $258 approximately.
• B) $550 approximately.
• C) $2,262 approximately.
• D) $1,100 approximately.
• E) $1,155 approximately.

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Definitions:

Penetration Pricing

A pricing strategy where a product is introduced to the market at a very low price to stimulate demand and gain market share quickly.

Market Prices

The current prices at which goods or services are bought and sold in a marketplace.

Market Position

The standing or rank of a company, product, or brand in a particular market, often relative to its competitors.

Reference Pricing

Psychological pricing strategy common in retailing goods for which consumers have an idea of what the price “should be.”