The Table Shows the Consumption Schedule for a Hypothetical Economy

question 71

Multiple Choice

The table shows the consumption schedule for a hypothetical economy.All figures are in billions of dollars.

-Refer to the above table.If taxes were zero,government purchases of goods and services $10,planned investment $6,and net exports zero,equilibrium real GDP would be:

• A) $620
• B) $630
• C) $640
• D) $650

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Definitions:

Total Variable Cost

The sum of all costs that vary with the level of output produced, such as materials and labor.

Break-Even Analysis

Technique used to examine the relationships among cost, price, revenue, and profit over different levels of production and sales to determine the break-even point.

Variable Costs

Expenses that change in proportion to the activity or volume of a business.

Substitute Products

Goods or services that can be used in place of another, offering consumers alternatives based on preference, price, or availability.