Real GDP (dollars) 3,0004,0005,0006,0007,0008,000 Consumption expenditure (dollars) 2,5003,2504,0004,7505,5006,250 Investment (dollars) 500500500500500500 Government expenditure (dollars) 500500500500500500 -In the above table, there are no taxes and no imports or exports. Investment increases from $500 to $750. After the increase in investment, the new equilibrium level of output is
A) $6,000. B) $5,750. C) $7,000. D) $5,000.
Correct Answer:
Verified
Unlock this answer now Get Access to more Verified Answers free of charge