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

$\begin{array} { | c | c | c | c | c | c | }
\hline \begin{array} { c }
( 1 ) \
\text { Price } \
\text { Level }
\end{array} & \begin{array} { c }
( 2 ) \
\mathrm { C }
\end{array} & \begin{array} { c }
( 3 ) \
\mathrm { I }
\end{array} & \begin{array} { c }
( 4 ) \
\mathrm { G }
\end{array} & \begin{array} { c }
( 5 ) \
\mathrm { X }
\end{array} & \begin{array} { c }
( 6 ) \
\mathrm { M }
\end{array} \
\hline 128 & \$ 18 & \$ 2 & \$ 3 & \$ 4 & \$ 5 \
\hline 125 & 20 & 4 & 3 & 4 & 4 \
\hline 122 & 22 & 6 & 3 & 4 & 3 \
\hline 119 & 24 & 8 & 3 & 4 & 2 \
\hline 116 & 26 & 10 & 3 & 4 & 1 \
\hline
\end{array}$
-If equilibrium real output is $42 billion in this country,the level of consumption will be:

Question

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

$\begin{array} { | c | c | c | c | c | c | } 
\hline \begin{array} { c } 
( 1 ) \
\text { Price } \
\text { Level }
\end{array} & \begin{array} { c } 
( 2 ) \
\mathrm { C }
\end{array} & \begin{array} { c } 
( 3 ) \
\mathrm { I }
\end{array} & \begin{array} { c } 
( 4 ) \
\mathrm { G }
\end{array} & \begin{array} { c } 
( 5 ) \
\mathrm { X }
\end{array} & \begin{array} { c } 
( 6 ) \
\mathrm { M }
\end{array} \
\hline 128 & \$ 18 & \$ 2 & \$ 3 & \$ 4 & \$ 5 \
\hline 125 & 20 & 4 & 3 & 4 & 4 \
\hline 122 & 22 & 6 & 3 & 4 & 3 \
\hline 119 & 24 & 8 & 3 & 4 & 2 \
\hline 116 & 26 & 10 & 3 & 4 & 1 \
\hline
\end{array}$
-If equilibrium real output is $42 billion in this country,the level of consumption will be:

Quizplus · Accepted Answer

To find the level of consumption when the equilibrium real output is $42 billion, we use the formula for GDP: $GDP = C + I + G + (X - M)$. We look for the row in the table where the sum of C, I, G, and (X - M) equals $42 billion. Starting from the bottom row and moving upwards:- For the price level of 116: $C = 26$, $I = 10$, $G = 3$, $X - M = 4 - 1 = 3$. The sum is $26 + 10 + 3 + 3 = 42$ billion. Therefore, the level of consumption when the equilibrium real output is $42 billion is $26 billion.

In the Following Table for a Hypothetical Country, C Is