The Table Given Below Reports the Value of Real GDP

question 14

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. The equilibrium value of imports in year 1 is:

• A) $1,600
• B) $1,450.
• C) $1,400.
• D) $1,300.
• E) $1,200.

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Definitions:

Manufacture

The process of converting raw materials into finished goods through the use of labor, machines, and chemical processes.

Gross Domestic Product

The total value of all goods and services produced within a country in a specific time period.

Telephone Bill

The monthly statement charging a customer for the usage of a telephone service.

Corporate Stock

signifies ownership shares in a corporation, offering holders a claim on part of the company's assets and earnings.