(Advanced Analysis)Answer the Question on the Basis of the Following

question 124

Multiple Choice

(Advanced analysis) Answer the question on the basis of the following data for a private closed economy.The letters Y,C,S,and I are used to represent real GDP,consumption,saving,and investment respectively. $\begin{array}{ccc}\underline{\text { GDP }(Y) } & \underline{\text { Consumption (C) }} & \underline{\text { Investment (I) }} \\\$ \$ 0 & \$ 60 & \$ 30 \\100 & 120 & 40 \\200 & 180 & 50 \\300 & 240 & 60 \\400 & 300 & 70 \\500 & 360 & 80\end{array}$ The equation representing the consumption schedule for the economy is:

• A) C = Y - .6S.
• B) Y = C + S.
• C) C = 60 + .4Y.
• D) C = 60 + .6Y.

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Definitions:

Supply Of Calculators

The total quantity of calculators that manufacturers are willing and able to sell at various price levels, holding all else equal.

Lower Cost

Refers to the reduction in expenses required to produce goods and services, improving profitability.

Surplus

An amount of something left over when requirements have been met; in economics, it typically refers to excess supply over demand.

Shortage

A market condition whereby the request for a service or product goes beyond what is readily available.