The Table Given Below Shows the Real GDP, Aggregate Expenditures

question 104

Multiple Choice

The table given below shows the real GDP, aggregate expenditures, saving, and imports of an economy.?

-Refer to Table 10.4. Suppose the economy is currently in equilibrium and has a potential GDP of $6,000. The current GDP gap equals _____.

• A) $400
• B) $1,000
• C) $2,000
• D) $3,000
• E) $6,000

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Definitions:

Rate of Interest

The charge, as a percentage of the initial loan amount, incurred by a borrower for the utilization of funds or assets from a lender.

Company Cost

Expenses incurred by a business in the process of producing goods or services, including operational, production, and capital costs.

Capital

Financial assets or the financial value of assets, such as cash and goods, used to fund the production of goods and services or to pay for investments.

Outstanding Debt

The total amount of debt that a company or individual owes that has not yet been paid.