The Table Given Below Shows the Levels of National Income

question 133

Multiple Choice

The table given below shows the levels of national income (Y) and the corresponding levels of saving (S) , investment (I) , export (X) , and import (M) of an open economy. Table 10.2
Consider the economy described in Table 10.2.What is the equilibrium level of real GDP?

• A)$935
• B)$2, 100
• C)$3, 320
• D)$4, 800
• E)$5, 230

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Definitions:

Investment

Utilization of resources (such as capital, time, or effort) with the expectation of achieving a future return, often through the acquisition of assets or improvement of productivity.

Inefficiency

The state of not achieving maximum productivity; failing to make the best use of time, resources, or energy.

Technological Advances

Refers to the progress in technological development that leads to new or improved goods and services, manufacturing processes, or the development of new markets, impacting economic growth and productivity.

Berkshire Hathaway

A multinational conglomerate holding company led by Warren Buffett, known for its long-term investments in a diverse range of businesses and industries.