The Table Given Below Shows the Real GDP, Aggregate Expenditures

question 96

Multiple Choice

The table given below shows the real GDP, aggregate expenditures, saving, and imports of an economy.
Table 10.4
$\begin{array}{|c|c|c|c|}\hline \text { Real GDP } & \begin{array}{c}\text { Aggregate } \\\text { Expenditures }\end{array} & \text { Saving } & \text { Imports } \\\hline \$ 0 & \$ 800 & -\$ 300 & \$ 50 \\\$ 1,000 & \$ 1,600 & -\$ 200 & \$ 150 \\\$ 2,000 & \$ 2,400 & -\$ 100 & \$ 250 \\\$ 3,000 & \$ 3,200 & \$ 0 & \$ 350 \\\$ 4,000 & \$ 4,000 & \$ 100 & \$ 450 \\\$ 5,000 & \$ 4,800 & \$ 200 & \$ 550 \\\$ 6,000 & \$ 5,600 & \$ 300 & \$ 650 \\\hline\end{array}$
-Refer to Table 10.4. Given a potential GDP of $6,000, the recessionary gap equals _____.

• A) $200
• B) $400
• C) $1,000
• D) $2,000
• E) $5,000

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Definitions:

Opportunity Costs

The cost of forgoing the next best alternative when making a decision.

Relevant Costs

Costs that should be considered when making decisions, characterized by their occurrence in the future and variability depending on the decision made.

Historical Costs

The original monetary value of an asset or expense as recorded in the company's accounts at the time of the transaction, without adjustments for inflation.

Management Accountant

A management accountant is a finance professional who prepares and analyzes financial data to help managers make informed business decisions, focusing on budgeting, performance evaluation, and cost management.