The Basis of the Parameters for an Economy Shown in Table

question 191

Multiple Choice

The basis of the parameters for an economy shown in Table 6.5.(All figures are in $billion. )

-Refer to Table 6.5 to answer this question.What is the value of equilibrium income in this economy?

• A)$3,840.
• B)$3,967.
• C)$4,000.
• D)$4,133.
• E)$5,000.

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Definitions:

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a product or service to a change in its price.

Bread

A staple food made primarily of flour, water, and yeast or another leavening agent, baked into a variety of forms and eaten worldwide.

Total Expenditures

The aggregate amount of spending on goods and services in an economy over a specified period.

Total Revenue

The aggregate income a company garners from its sales of goods or provision of services over a designated period.