Use the following table with data for a private closed economy (an economy with only a private sector and no international trade) to answer the next question. All figures are in billions of dollars.Expected Rate of ReturnInvestmentConsumptionGDP10%$0$400$4008100500600620060080043007001,00024008001,20005009001,400If the real rate of interest is 2%, then the equilibrium level of real GDP will be
A. $800 billion.
B. $1,200 billion.
C. $1,400 billion.
D. $1,000 billion.
Answer: B
You might also like to view...
According to the graph shown, if this economy were open to free trade, it would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. import this good because the domestic price is greater than the world price.
B. export this good because the domestic price is greater than the world price.
C. import this good because the world price is greater than the domestic price.
D. export this good because the world price is greater than the domestic price.
Jaime’s income elasticity for science fiction novels is 1.2 and for mystery novel -1. For Jaime, science fiction novels are ____________and mystery novels are ____________:
a. normal; normal b. normal; inferior c. inferior; normal d. inferior; inferior
What is the controversy surrounding property taxes as a source for school funding?
The demand curve for labor of Coca-Cola manufacturers will not shift to the right if:
A. Coca-Cola workers become unionized. B. the price of Coca-Cola increases. C. the firms innovate with new technology that raises labor productivity. D. the price of Pepsi increases.