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:

Consumer Market

A marketplace where individuals or households purchase goods and services for personal consumption.

Main Crops

Primary agricultural products that are extensively cultivated in a region.

High Inflation

A period of rapidly increasing prices, decreasing the purchasing power of money.

Industrial Capitalists

Individuals or entities investing in industries for production, with the aim of generating profit through ownership of capital goods.