Consider the Following Information Describing a Closed Economy with No

question 153

Multiple Choice

Consider the following information describing a closed economy with no government and where aggregate output is demand determined.All dollar figures are in billions. TABLE 21-3
-Refer to Table 21-3.At the equilibrium level of national income,desired saving ($billions) is

• A)$100.
• B)$300.
• C)$4000.
• D)$3900.
• E)$1000.

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Definitions:

Economy

The system by which goods and services are produced, distributed, and consumed within a particular area or country.

Basic Decisions

Fundamental choices or determinations made to guide actions, policies, or strategies, often in businesses or personal planning.

Economies

The large set of inter-related production, consumption, and exchange activities that aid in determining how scarce resources are allocated.

Goods Produced

The total quantity of physical items that are manufactured or processed by a company or economy within a specific time frame.