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Consider the Following Data A)when Real GDP Is Less Than 3,600
B)when Real GDP

Question 1

Multiple Choice

Consider the following data. Based on this data, over what range of real GDP (in millions of dollars) will businesses need to sell inventory in order to meet current demand?  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) when real GDP is less than 3,600
B) when real GDP is less than 4,200
C) when real GDP is greater than 4,800
D) when real GDP is greater than 4,200

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