Use the Information Below to Answer the Following Questions

question 106

Multiple Choice

Use the information below to answer the following questions.
Fact 27.5.1
The economy of Beverly Hills has a consumption function of C = 10 + 0.8Y, investment equal to 6, government expenditure equal to 10, exports equal to 10, and an import function of M = 0.1Y.
-Refer to Fact 27.5.1. If autonomous consumption increases by 10, what is the new equilibrium real GDP for this economy?

• A)153.33
• B)120
• C)86.67
• D)460
• E)230

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Definitions:

Plants

Multicellular organisms in the kingdom Plantae that photosynthesize, using sunlight to convert carbon dioxide and water into glucose and oxygen.

Consumer

An individual or group that purchases goods and services for personal use, playing a critical role in the economy by driving demand and influencing production.

Organism

A living entity consisting of one cell, like bacteria, or many cells, like plants, animals, and humans.