The Table Given Below Shows the Real GDP, Aggregate Expenditures

question 46

Multiple Choice

The table given below shows the real GDP, aggregate expenditures, saving, and imports of an economy. Table 10.4
Refer to Table 10.4.Suppose the economy is currently in equilibrium and the potential GDP of the economy is $6, 000.The current GDP gap equals _____.

• A)$400
• B)$1, 000
• C)$2, 000
• D)$3, 000
• E)$6, 000

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Definitions:

Authority

The power or right to give orders, make decisions, and enforce obedience.

Control Systems

Means by which headquarters can force compliance from global subsidiaries.

Global Subsidiaries

Companies that are owned or controlled by a parent company but operate in different countries, adapting to local markets while aligning with global strategies.

Network Structure

A framework that outlines how different nodes or points in a network are connected and communicate with each other.