-The Above Table Gives Data for the Nation of South

question 25

Multiple Choice

$$\begin{array} { c c c c } \begin{array} { c } \text { Real GDP, Y } \\\text { (billions of 2005 dollars) }\end{array} & \text { Consumption expenditure, C } & \text { Investment, I } & \text { Government expenditure, G } \\\text { (billions of 2005 dollars) } & \text { (billions of 2005 dollars) } & \text { (billions of 2005 dollars) } \\\hline 100 & 150 & 150 & 100 \\200 & 200 & 150 & 100 \\300 & 250 & 150 & 100 \\400 & 300 & 150 & 100 \\500 & 350 & 150 & 100 \\600 & 400 & 150 & 100 \\700 & 450 & 150 & 100 \\800 & 500 & 150 & 100 \\900 & 550 & 150 & 100\end{array}$$
-The above table gives data for the nation of South Hampton.There are no imports into or exports from South Hampton.Aggregate planned expenditure is less than actual expenditure if real GDP is

• A) $700 billion.
• B) less than $700 billion.
• C) more than $700 billion.
• D) at the equilibrium level.
• E) Both answers A and C are correct.

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Definitions:

Event

An occurrence or happening, often of significance and usually a distinct piece of time.

Certainty Equivalent

The guaranteed amount of money that an individual would view as equally desirable to a risky gamble.

Probability

A measure of the likelihood of a certain event or outcome, expressed as a number between 0 and 1.

Expected Utility Maximizer

An economic concept referring to individuals or entities that make choices under uncertainty to maximize their expected level of satisfaction or utility.