Refer to the Table Below to Answer the Following Question

question 139

Multiple Choice

Refer to the table below to answer the following question.
Table 11.2.1

-Table 11.2.1 gives the aggregate expenditure schedule.Equilibrium expenditure is equal to

• A)$5 trillion.
• B)$3 trillion.
• C)$4 trillion.
• D)$2 trillion.
• E)zero.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are a significant portion of the product's cost.

Selling and Administrative Expenses

Costs related to selling a product and managing a business, excluding direct production costs.

Standard Cost

A predetermined cost of manufacturing, selling, or any business operation, which is used for budgeting and assessing performance.

Fixed Manufacturing Overhead

Refers to the consistent, non-variable costs associated with manufacturing a product, such as factory lease payments and salaries of permanent staff.