The Table Given Below Reports the Value of Real GDP

question 132

Multiple Choice

The table given below reports the value of real GDP and its components consumption (C) , investment (I) , exports, and imports for two consecutive years. Table 10.3
Refer to Table 10.3.To increase equilibrium real GDP in an open economy to $12, 000 in year 3, all else equal to that in year 2, investment would have to increase by:

• A)$258.
• B)$550.
• C)$2, 262.
• D)$1, 100.
• E)$1, 155.

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Definitions:

Business Activities

The various actions, operations, and pursuits that a company engages in to achieve its business objectives and generate revenue.

Facilitation Payment

A type of bribe made to expedite or secure the performance of a routine or necessary action to which the payer is legally entitled.

Utilitarian

A philosophy which suggests that actions are right if they are beneficial for the majority, emphasizing the greatest happiness for the greatest number.

Greatest Good

A principle in utilitarian ethics focused on actions that result in the greatest benefit or happiness for the largest number of people.