If Abishag Owned 20 Quinces and 20 Kumquats and If

question 23

Multiple Choice

if Abishag owned 20 quinces and 20 kumquats and if the price of kumquats is 4 times the price of quinces, how many kumquats could she afford if she spent all of her money on kumquats?

• A)50
• B)25
• C)40
• D)20
• E)22

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Definitions:

Equilibrium Real GDP

is the level of Gross Domestic Product where aggregate demand equals aggregate supply, resulting in a stable economy without inflationary or recessionary gaps.

Investment

The act of allocating resources, usually financial, with the expectation of generating an income or profit, such as purchasing stocks, bonds, or real estate.

Inflationary GDP Gap

A situation where actual gross domestic product exceeds the potential GDP, leading to upward pressure on prices and inflation.

Government Spending

The total expenditure by the government on goods and services, including salaries of public servants, public investments, and social services.