Consider the Following Information Describing an Economy with Demand-Determined Output

question 99

Multiple Choice

Consider the following information describing an economy with demand-determined output.There is no government or foreign trade.All dollar figures are in billions.
1.equilibrium condition is Y = C + I
2.marginal propensity to save = 0.20
3.the autonomous part of C is $50
4.investment is autonomous and equals $25
TABLE 21-5
-Refer to Table 21-5.The equilibrium level of national income is

• A)$375.
• B)$249.
• C)$155.
• D)$75.
• E)$93.75.

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Definitions:

Oldest Inventory Purchase Costs

Refers to the costs associated with the earliest batch of products bought by a business, crucial for inventory valuation methods like FIFO (First-In, First-Out).

Cost of Goods Sold

This accounts for the direct costs attributable to the production of the goods sold in a company, including material and labor costs.

Merchandise Inventory Account

An account on a company's balance sheet that represents the products that a retail or wholesale company plans to sell.

Units of Inventory Purchased

The total quantity of items bought for resale or use in production during a specific period.