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-Refer to the Table in the Exhibit

Question 24

Multiple Choice

 Real  GDP ($)  Consumption ($)  Planned  investment ($)  Government  purchases ($) 1,8001,5401002001,9001,6201002002,0001,7001002002,1001,7801002002,2001,8601002002,3001,940100200\begin{array} { c c c c } \hline \begin{array} { c } \text { Real } \\\text { GDP } \\( \$ ) \end{array} & \begin{array} { c } \text { Consumption } \\( \$ ) \end{array} & \begin{array} { c } \text { Planned } \\\text { investment } \\( \$ ) \end{array} & \begin{array} { c } \text { Government } \\\text { purchases } \\( \$ ) \end{array} \\\hline 1,800 & 1,540 & 100 & 200 \\1,900 & 1,620 & 100 & 200 \\2,000 & 1,700 & 100 & 200 \\2,100 & 1,780 & 100 & 200 \\2,200 & 1,860 & 100 & 200 \\2,300 & 1,940 & 100 & 200 \\\hline\end{array}
-Refer to the table in the exhibit.Suppose government purchases increased to $100.What would be the effect on equilibrium real GDP demanded?  


A)  It would decrease by $100. 
B)  It would decrease by $300. 
C)  It would increase by $100. 
D)  It would increase by $300.

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