Consider the following data. Based on this data, over what range of real GDP will businesses need to sell inventory in order to meet current demand? $$\begin{array} { | c | c | c | c | c | }
\hline \text { Real GDP } & \text { Consumption } & \text { Investment } & \begin{array} { c }
\text { Government } \
\text { Expenditure }
\end{array} & \text { Net Exports } \
\hline 0 & 800 & 1,050 & 1,100 & - 150 \
\hline 1,200 & 1,600 & 1,050 & 1,100 & - 150 \
\hline 2,400 & 2,400 & 1,050 & 1,100 & - 150 \
\hline 3,600 & 3,200 & 1,050 & 1,100 & - 150 \
\hline 4,800 & 4,000 & 1,050 & 1,100 & - 150 \
\hline 6,000 & 4,800 & 1,050 & 1,100 & - 150 \
\hline 7,200 & 5,600 & 1,050 & 1,100 & - 150 \
\hline 8,400 & 6,400 & 1,050 & 1,100 & - 150 \
\hline 9,600 & 7,200 & 1,050 & 1,100 & - 150 \
\hline
\end{array}$$
A)when real GDP is equal to potential GDP
B)when real GDP is equal to 9,600
C)when real GDP is greater than 8,400
D)when real GDP is less than 8,400

Question

Consider the following data. Based on this data, over what range of real GDP will businesses need to sell inventory in order to meet current demand? $$\begin{array} { | c | c | c | c | c | } 
\hline \text { Real GDP } & \text { Consumption } & \text { Investment } & \begin{array} { c } 
\text { Government } \
\text { Expenditure }
\end{array} & \text { Net Exports } \
\hline 0 & 800 & 1,050 & 1,100 & - 150 \
\hline 1,200 & 1,600 & 1,050 & 1,100 & - 150 \
\hline 2,400 & 2,400 & 1,050 & 1,100 & - 150 \
\hline 3,600 & 3,200 & 1,050 & 1,100 & - 150 \
\hline 4,800 & 4,000 & 1,050 & 1,100 & - 150 \
\hline 6,000 & 4,800 & 1,050 & 1,100 & - 150 \
\hline 7,200 & 5,600 & 1,050 & 1,100 & - 150 \
\hline 8,400 & 6,400 & 1,050 & 1,100 & - 150 \
\hline 9,600 & 7,200 & 1,050 & 1,100 & - 150 \
\hline
\end{array}$$
A)when real GDP is equal to potential GDP
B)when real GDP is equal to 9,600
C)when real GDP is greater than 8,400
D)when real GDP is less than 8,400

Quizplus · Accepted Answer

To determine when businesses need to sell inventory to meet current demand, we need to find the point where total demand (Consumption + Investment + Government Expenditure + Net Exports) equals or exceeds Real GDP. For each level of Real GDP, we calculate total demand and compare it to Real GDP. The first instance where Real GDP is less than total demand is at 8,400, indicating that for Real GDP levels less than 8,400, businesses will need to sell inventory to meet demand.

Consider the Following Data A)when Real GDP Is Equal to Potential GDP B)when Real

Consider the Following Data A)when Real GDP Is Equal to Potential GDP
B)when Real