The Table Given Below Shows the Real GDP, Aggregate Expenditures

question 101

Multiple Choice

The table given below shows the real GDP, aggregate expenditures, saving, and imports of an economy. Table 10.4
Calculate the marginal propensity to consume for the economy from the information given in Table 10.4.

• A)0.9
• B)0.8
• C)0.5
• D)0.2
• E)0.1

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Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period of time, indicating an improvement in the country's economic health.

Resource Allocation

The process of distributing available resources among various competing needs or uses in order to achieve desired objectives.

Production Possibilities Curve

A graphical representation that shows the maximum quantity of one good that can be produced for any given quantity produced of another good, given the resources and technology available.

Technological Change

The development and application of new technologies and methods in production, often leading to increased efficiency and productivity.