(Advanced analysis)Answer the question on the basis of the following data for a private closed economy.The letters Y,C,S,and I are used to represent real GDP,consumption,saving,and investment respectively. $\begin{array}{ccc}
\underline{\text { GDP }(Y)} & \underline{\text { Consumption (C) }} & \underline{\text { Investment (I) }} \
\$ \$ 0 & \$ 60 & \$ 30 \
100 & 120 & 40 \
200 & 180 & 50 \
300 & 240 & 60 \
400 & 300 & 70 \
500 & 360 & 80
\end{array}$ Refer to the data.Equilibrium Y (= GDP)is:
A) $100.
B) $200.
C) $300.
D) $400.

Question

Quizplus · Accepted Answer

In a closed economy, Y (real GDP) is the sum of consumption (C), saving (S), and investment (I): 
Y = C + S + I

Given the data, 
C = $200 
S = $50 
I = $50

Substituting the values in the equation, 
Y = $200 + $50 + $50 = $300

Therefore, the equilibrium Y (=GDP) is $300, and the best choice is option C.

(Advanced Analysis)Answer the Question on the Basis of the Following