Suppose That Real GDP for 2017 Was $10 000 Billion

question 68

Multiple Choice

Suppose that real GDP for 2017 was $10 000 billion and real GDP for 2018 was $11 000 billion. What is the rate of growth of real GDP?

• A)11%
• B)10%
• C)5%
• D)2%

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Definitions:

Disposable Income

The liquidity pool available for households to channel into saving and spending after income tax deductions.

Induced Consumption

The part of consumer spending that increases when disposable income rises and decreases when disposable income falls.

Disposable Income

The amount of money left for spending and saving after income taxes have been deducted.

Autonomous Consumption

The level of consumption that does not change with fluctuation in income; it is the consumption level when income is zero.