-The Table Above Gives Data for the Nation of Pearl,a

question 15

Multiple Choice

-The table above gives data for the nation of Pearl,a small island in the South Pacific.If aggregate demand increases so that the quantity of real GDP demanded is $6 billion more at each price level,the new equilibrium real GDP is

• A)$34 billion.
• B)$31 billion.
• C)$28 billion.
• D)$25 billion.
• E)$23 billion.

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Definitions:

Total Costs

The sum of all expenses a business incurs to produce or sell its products or services, including fixed and variable costs.

Marginal Costs

The cost associated with producing one extra unit of a commodity, emphasizing the importance of scale in production.

Average Total Costs

The total cost of production divided by the number of units produced, representing the cost per unit.

Average Fixed Costs

Fixed production costs (unchanged by output volume) divided by the total produced output quantity.