-In the Above Table, There Are No Taxes and No

$$\begin{array} { | l | l | l | l | } \hline \begin{array} { l } \text { Real GDP } \\\text { (dollars) }\end{array} & \begin{array} { l } \text { Consumption } \\\text { expenditure } \\\text { (dollars) }\end{array} & \begin{array} { l } \text { Investment } \\\text { (dollars) }\end{array} & \begin{array} { l } \text { Government } \\\text { expenditure } \\\text { (dollars) }\end{array} \\\hline 3,000 & 2,500 & 500 & 500 \\\hline 4,000 & 3,250 & 500 & 500 \\\hline 5,000 & 4,000 & 500 & 500 \\\hline 6,000 & 4,750 & 500 & 500 \\\hline 7,000 & 5,500 & 500 & 500 \\\hline 8,000 & 6,250 & 500 & 500 \\\hline\end{array}$$
-In the above table, there are no taxes and no imports or exports. Investment increases from $500 to
$750. After the increase in investment, the new equilibrium level of output is

A) $6,000.
B) $5,750.
C) $7,000.
D) $5,000.

Correct Answer:

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