Consider the Net Export Function

question 59

Multiple Choice

Consider the net export function.Suppose exports are $200 and imports are given by IM = 0.2Y.At what level of national income will net exports equal zero?

• A)$0
• B)$200
• C)$250
• D)$1000
• E)$1250

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Definitions:

Unfavourable Variance

A financial metric indicating that actual costs were higher or revenues were lower than the planned or standard amounts.

Productive Capacity

The maximum output a system, entity, or project can produce under normal conditions over a particular period.

Fixed Overheads

Fixed overheads are recurring business expenses that do not fluctuate with production volume, such as rent, salaries, and utility costs, essential for operational management.

Level of Activity

Level of activity refers to the volume of work or production achieved in a specific period, often influencing costs and operational planning.