Use the Following Situation to Answer the Question : Situation

question 35

Multiple Choice

Use the following Situation to answer the question : situation 20-1
Assume a closed economy with no government. Suppose that autonomous consumption equals $400, planned investment equals $500, and the mpc equals 0.9.
-Using the information in Situation 20-1,the equilibrium level of aggregate output is

• A)$900.
• B)$8,000.
• C)$9,000.
• D)$10,000.

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Definitions:

Assets

Resources owned by a company that have economic value and are expected to provide future benefits.

Revenues

The total amount of money earned by a company from its normal business activities, typically from the sale of goods and services to customers.

Trial Balance

A financial worksheet where all ledger balances are totaled into debit and credit columns which balance equally.

Office Supplies

Items used in offices for daily operations, such as stationery, paper clips, and staplers.