The Following Table Provides Data for an Economy in a Certain

question 82

Multiple Choice

The following table provides data for an economy in a certain year. $$\begin{array} { l r } \text { Consumption expenditures } & 1,000 \\\text { Imports } & 600 \\\text { Government purchases of goods and services } & 700 \\\text { Construction of new homes and apartments } & 500 \\\text { Sales of existing homes and apartments } & 600 \\\text { Exports } & 500 \\\text { Government payments to retirees } & 200 \\\text { Household purchases of durable goods } & 300 \\\text { Beginning-of-year inventory } & 500 \\\text { End-of-year inventory } & 600 \\\text { Business fixed investment } & 300\end{array}$$ Given the data in the table, compute the government purchases component of GDP.

• A) 200
• B) 500
• C) 700
• D) 900

Recognize the factors that influence long-run aggregate supply and demand, including technological changes and resource availability.

Understand the concept of potential output and how it is affected by economic factors.

Interpret the effects of beneficial and adverse supply shocks on the economy.

Evaluate the impact of changes in capital stock on an economy's production capacity.

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Definitions:

Futures Contract

A futures contract is a standardized legal agreement to buy or sell a particular commodity or financial asset at a predetermined price at a specified time in the future.

Coffee

A brewed drink prepared from roasted coffee beans, which are the seeds of berries from the Coffea plant.

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, often used for commodities or financial instruments.

Cotton

A natural fiber used in the textile industry, known for its versatility, comfort, and absorbency.