$\begin{array} { l }
C = 40 + 0.8 \mathrm { Y } \
I _ { g } = 40 \
X = 20 \
M = 30
\end{array}$
(Advanced analysis) The equations give information for a private open economy. The letters $Y , C , I _ { g } , X$, and $M$ stand for GDP, consumption, gross investment, exports, and imports, respectively. Figures are in billions of dollars. International trade in this case
A) has an expansionary effect on GDP.
B) has a contractionary effect on GDP.
C) has no effect on GDP.
D) is causing in?ation in this economy.

Question

$\begin{array} { l } 
C = 40 + 0.8 \mathrm { Y } \
I _ { g } = 40 \
X = 20 \
M = 30
\end{array}$
(Advanced analysis) The equations give information for a private open economy. The letters $Y , C , I _ { g } , X$, and $M$ stand for GDP, consumption, gross investment, exports, and imports, respectively. Figures are in billions of dollars. International trade in this case
A) has an expansionary effect on GDP.
B) has a contractionary effect on GDP.
C) has no effect on GDP.
D) is causing in?ation in this economy.

Quizplus · Accepted Answer

This code seems to be a product code or serial number, and it has no direct connection with macroeconomic variables like GDP or inflation. Therefore, it has no effect on GDP, and it is not causing inflation. None of the given options is a valid choice.

C=40+0.8YIg=40X=20M=30\begin{array} { l } C = 40 + 0.8 \mathrm { Y } \\I _ { g } = 40 \\X = 20 \\M = 30\end{array}C=40+0.8YIg​=40X=20M=30​

$\begin{array} { l } C = 40 + 0.8 \mathrm { Y } \\I _ { g } = 40 \\X = 20 \\M = 30\end{array}$