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Consider the Following Data A)2,400
B)3,600
C)4,200
D)4,600

Question 3

Multiple Choice

Consider the following data. What is the equilibrium GDP in this economy (in millions of dollars) ?  Real GDP  (millions of  dollars)   Consumptio n (millions of  dollars)   Investment  (millions of  dollars)   Government  Expenditure  (millions of  dollars)   Net Exports  (millions of  dollars)  040052555075600800525550751,2001,200525550751,8001,600525550752,4002,000525550753,0002,400525550753,6002,800525550754,2003,200525550754,8003,60052555075\begin{array} { | c | c | c | c | c | } \hline \begin{array} { c } \text { Real GDP } \\\text { (millions of } \\\text { dollars) }\end{array} & \begin{array} { c } \text { Consumptio } \\\mathbf { n } \\\text { (millions of } \\\text { dollars) }\end{array} & \begin{array} { c } \text { Investment } \\\text { (millions of } \\\text { dollars) }\end{array} & \begin{array} { c } \text { Government } \\\text { Expenditure } \\\text { (millions of } \\\text { dollars) }\end{array} & \begin{array} { c } \text { Net Exports } \\\text { (millions of } \\\text { dollars) }\end{array} \\\hline 0 & 400 & 525 & 550 & - 75 \\\hline 600 & 800 & 525 & 550 & - 75 \\\hline 1,200 & 1,200 & 525 & 550 & - 75 \\\hline 1,800 & 1,600 & 525 & 550 & - 75 \\\hline 2,400 & 2,000 & 525 & 550 & - 75 \\\hline 3,000 & 2,400 & 525 & 550 & - 75 \\\hline 3,600 & 2,800 & 525 & 550 & - 75 \\\hline 4,200 & 3,200 & 525 & 550 & - 75 \\\hline 4,800 & 3,600 & 525 & 550 & - 75 \\\hline\end{array}


A) 2,400
B) 3,600
C) 4,200
D) 4,600

Correct Answer:

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