-Refer to the Table in the Exhibit

question 76

Multiple Choice

$$\begin{array} { c c c c } \hline \begin{array} { c } \text { Real } \\\text { GDP } \\( \$ ) \end{array} & \begin{array} { c } \text { Consumption } \\( \$ ) \end{array} & \begin{array} { c } \text { Planned } \\\text { investment } \\( \$ ) \end{array} & \begin{array} { c } \text { Government } \\\text { purchases } \\( \$ ) \end{array} \\\hline 1,800 & 1,540 & 100 & 200 \\1,900 & 1,620 & 100 & 200 \\2,000 & 1,700 & 100 & 200 \\2,100 & 1,780 & 100 & 200 \\2,200 & 1,860 & 100 & 200 \\2,300 & 1,940 & 100 & 200 \\\hline\end{array}$$
-Refer to the table in the exhibit.Suppose government purchases increased to $300.By what amount would equilibrium real GDP demanded increase?  

• A) by $300 
• B) by $500 
• C) by $1,200 
• D) by $1,500

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Definitions:

Observational Studies

Research methods where the investigator observes subjects without manipulation, aiming to find correlations between variables.

Planetary Motion

The movement of planets around a star, such as the orbit of Earth and other planets around the Sun.

Proxy Variable

An auxiliary variable used in statistical analyses to represent an unobservable or difficult-to-measure variable.

Confounding Variable

A variable that influences both the dependent variable and independent variable, causing a spurious association.