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In the Following Table for a Hypothetical Country, C Is

Question 42

Multiple Choice

In the following table for a hypothetical country, C is consumption, I is investment, G is government purchases, X is exports, and M is imports. All figures in columns (2) to (6) are in billions of dollars

(1)  Price  Level (2) C(3) I(4) G(5) X(6) M128$18$2$3$4$51252043441222263431192483421162610341\begin{array} { | c | c | c | c | c | c | } \hline \begin{array} { c } ( 1 ) \\\text { Price } \\\text { Level }\end{array} & \begin{array} { c } ( 2 ) \\\mathrm { C }\end{array} & \begin{array} { c } ( 3 ) \\\mathrm { I }\end{array} & \begin{array} { c } ( 4 ) \\\mathrm { G }\end{array} & \begin{array} { c } ( 5 ) \\\mathrm { X }\end{array} & \begin{array} { c } ( 6 ) \\\mathrm { M }\end{array} \\\hline 128 & \$ 18 & \$ 2 & \$ 3 & \$ 4 & \$ 5 \\\hline 125 & 20 & 4 & 3 & 4 & 4 \\\hline 122 & 22 & 6 & 3 & 4 & 3 \\\hline 119 & 24 & 8 & 3 & 4 & 2 \\\hline 116 & 26 & 10 & 3 & 4 & 1 \\\hline\end{array}
-If equilibrium real output is $32 billion in this country,the equilibrium price level will be:


A) 128
B) 122
C) 125
D) 119
E) 116

Correct Answer:

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