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The Table Above Gives Data for the Nation of Pearl

Question 84

Multiple Choice

 Price level  (GDP deflator)   Potential GDP  (billions of 2005 dollars)   Real GDP supplied  (billions of 2005 dollars)   Real GDP demanded  (billions of 2005 dollars)  150253416140253119130252822120252525110252328\begin{array} { c c c c } \hline \begin{array} { c } \text { Price level } \\\text { (GDP deflator) }\end{array} & \begin{array} { c } \text { Potential GDP } \\\text { (billions of 2005 dollars) }\end{array} & \begin{array} { c } \text { Real GDP supplied } \\\text { (billions of 2005 dollars) }\end{array} & \begin{array} { c } \text { Real GDP demanded } \\\text { (billions of 2005 dollars) }\end{array} \\\hline 150 & 25 & 34 & 16 \\140 & 25 & 31 & 19 \\130 & 25 & 28 & 22 \\120 & 25 & 25 & 25 \\110 & 25 & 23 & 28 \\\hline\end{array}
The table above gives data for the nation of Pearl, a small island in the South Pacific.
- If aggregate demand increases so that the quantity of real GDP demanded is $6 billion more at each price level, the new equilibrium real GDP is


A) $34 billion.
B) $25 billion.
C) $31 billion.
D) $28 billion.
E) $23 billion.

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