-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:

Capital Investment Analysis

Involves evaluating the potential profitability and risks of investments made in long-term assets to determine their feasibility and impact on a company’s future.

Average Rate of Return

It calculates the return, generated over a period of time, of an investment compared to the initial investment.

Net Present Value Method

A method in capital budgeting that evaluates an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Present Value

The estimated current value of a forthcoming sum of money or series of cash inflows, considering a certain rate of return.