-The Above Table Gives Data for the Nation of Mouseville

question 161

Multiple Choice

$$\begin{array} { c c c c } \begin{array} { c } \text { Real GDP, } Y \\\text { (billions of 2005 } \\\text { dollars) }\end{array} & \begin{array} { c } \text { Consumption } \\\text { expenditure, } C\end{array} & \begin{array} { c } \text { (billions of 2005 } \\\text { Investment, } I\end{array} & \begin{array} { c } \text { Government } \\\text { expendithare, } G\end{array} \\\text { (billions of 2005 } & \begin{array} { c } \text { (billions of 2005 } \\\text { dollars) }\end{array} & \text { dollars) } \\\hline 100 & 150 & 150 & 150 \\200 & 200 & 150 & 150 \\300 & 250 & 150 & 150 \\400 & 300 & 150 & 150 \\500 & 350 & 150 & 150 \\600 & 400 & 150 & 150 \\700 & 450 & 150 & 150 \\800 & 500 & 150 & 150 \\900 & 550 & 150 & 150 \\\hline\end{array}$$
-The above table gives data for the nation of Mouseville.There are no imports into or exports from Mouseville.Unplanned inventory changes are zero when real GDP equals

• A) $800 billion.
• B) $900 billion.
• C) $300 billion.
• D) $500 billion.
• E) $700 billion.

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Definitions:

Binding Price Ceilings

Government-imposed price limits that are set below the market equilibrium price, leading to shortages.

Market Efficiency

A condition in which market prices fully reflect all available information and assets are priced accordingly.

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service, typically set below the equilibrium price to make goods more affordable.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price over a specified period.