$$\begin{array} { c c c c }
\hline \begin{array} { c }
\text { Real } \
\text { GDP } \
( \$ )
\end{array} & \begin{array} { c }
\text { Consumption } \
( \$ )
\end{array} & \begin{array} { c }
\text { Planned } \
\text { investment } \
( \$ )
\end{array} & \begin{array} { c }
\text { Government } \
\text { purchases } \
( \$ )
\end{array} \
\hline 1,800 & 1,540 & 100 & 200 \
1,900 & 1,620 & 100 & 200 \
2,000 & 1,700 & 100 & 200 \
2,100 & 1,780 & 100 & 200 \
2,200 & 1,860 & 100 & 200 \
2,300 & 1,940 & 100 & 200 \
\hline
\end{array}$$
-Refer to the table in the exhibit.Suppose government purchases increased to $100.What would be the effect on equilibrium real GDP demanded?
A) It would decrease by $100.
B) It would decrease by $300.
C) It would increase by $100.
D) It would increase by $300.

Question

$$\begin{array} { c c c c } 
\hline \begin{array} { c } 
\text { Real } \
\text { GDP } \
( \$ )
\end{array} & \begin{array} { c } 
\text { Consumption } \
( \$ )
\end{array} & \begin{array} { c } 
\text { Planned } \
\text { investment } \
( \$ )
\end{array} & \begin{array} { c } 
\text { Government } \
\text { purchases } \
( \$ )
\end{array} \
\hline 1,800 & 1,540 & 100 & 200 \
1,900 & 1,620 & 100 & 200 \
2,000 & 1,700 & 100 & 200 \
2,100 & 1,780 & 100 & 200 \
2,200 & 1,860 & 100 & 200 \
2,300 & 1,940 & 100 & 200 \
\hline
\end{array}$$
-Refer to the table in the exhibit.Suppose government purchases increased to $100.What would be the effect on equilibrium real GDP demanded?  
A) It would decrease by $100. 
B) It would decrease by $300. 
C) It would increase by $100. 
D) It would increase by $300.

Quizplus · Accepted Answer

The Answer of $$\begin{array} { c c c c } 
\hline \begin{array} { c } 
\text { Real } \
\text { GDP } \
( \$ )
\end{array} & \begin{array} { c } 
\text { Consumption } \
( \$ )
\end{array} & \begin{array} { c } 
\text { Planned } \
\text { investment } \
( \$ )
\end{array} & \begin{array} { c } 
\text { Government } \
\text { purchases } \
( \$ )
\end{array} \
\hline 1,800 & 1,540 & 100 & 200 \
1,900 & 1,620 & 100 & 200 \
2,000 & 1,700 & 100 & 200 \
2,100 & 1,780 & 100 & 200 \
2,200 & 1,860 & 100 & 200 \
2,300 & 1,940 & 100 & 200 \
\hline
\end{array}$$
-Refer to the table in the exhibit.Suppose government purchases increased to $100.What would be the effect on equilibrium real GDP demanded?  
A) It would decrease by $100. 
B) It would decrease by $300. 
C) It would increase by $100. 
D) It would increase by $300.

-Refer to the Table in the Exhibit