Consider the Following Hypothetical Data: C = $3,000; I =

question 18

Multiple Choice

Consider the following hypothetical data: C = $3,000; I = $1,200; G = $2,000; X - IM = -$500; depreciation = $200; and transfer payments = $800.According to this data, what is net domestic product?  

• A) $5,500 
• B) $5,700 
• C) $6,200 
• D) $6,400

---

Definitions:

Unanticipated Inflation

Inflation that occurs when people do not expect it, leading to negative impacts on savings and purchasing power.

Disinflation

A slowdown in the rate of increase of the general price level of goods and services over time.

Structural Unemployment

A situation in which there is a mismatch between the skills of unemployed workers and the skills needed for available jobs.

Cyclical Unemployment

This type of unemployment fluctuates with the business cycle, increasing during economic downturns and decreasing during periods of economic growth.