Use the Table Below to Answer the Following Questions

question 151

Multiple Choice

Use the table below to answer the following questions.
Table 27.3.1
The following table shows the relationship between aggregate planned
expenditure and real GDP in the hypothetical economy of Econoworld.

-Refer to Table 27.3.1. If investment increases by $25 billion, the real GDP becomes

• A)$525 billion.
• B)$625 billion.
• C)$725 billion.
• D)$600 billion.
• E)$675 billion.

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing their net benefit.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to market balance.

Mutually Beneficial Trades

Exchanges between parties that provide benefits or gains to all involved, enhancing their welfare or utility.

Well-Functioning Markets

Markets that efficiently allocate resources through the mechanism of supply and demand, leading to optimal outcomes for both buyers and sellers.