If Real GDP in a Closed Economy Is $50 Billion

question 131

Multiple Choice

If real GDP in a closed economy is $50 billion, consumption is $30 billion, and government purchases are $15 billion, what is investment?

• A)$15 billion
• B)$30 billion
• C)$40 billion
• D)$70 billion

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Definitions:

Deductive Reasoning

A logical process in which a conclusion follows necessarily from the stated premises; it is inference where true premises develop a true conclusion.

Skeptical

Being skeptical involves doubting or questioning the validity or authenticity of something.

Well-defined

Clearly described or outlined, with no ambiguity or confusion about the nature or limits of something.

Starting Information

The initial data or clues available to solve a problem or undertake a task, crucial for determining the direction and methods for reaching a solution or goal.