Use the following to answer questions .
Exhibit: Consumption and Real GDP
-(Exhibit: Consumption and Real GDP) If real GDP is $8 trillion, saving equals
A) $4 trillion.
B) $3 trillion.
C) $2 trillion.
D) $1 trillion.

Question

Use the following to answer questions .
Exhibit: Consumption and Real GDP 
-(Exhibit: Consumption and Real GDP) If real GDP is $8 trillion, saving equals
A) $4 trillion. 
B) $3 trillion. 
C) $2 trillion. 
D) $1 trillion.

Quizplus · Accepted Answer

The exhibit shows that at a real GDP of $8 trillion, consumption equals $5 trillion. Since saving is equal to disposable income minus consumption, and disposable income is equal to real GDP, we can calculate saving as $8 trillion - $5 trillion = $3 trillion. Therefore, choice B is the correct answer.

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