Use the Information Below to Answer the Following Questions

question 49

Multiple Choice

Use the information below to answer the following questions.
Fact 11.5.2
An economy has a consumption function of C = 15 + 0.7Y , investment equal to 8, government expenditure equal to 12, exports equal to 20, and an import function of M = 0.2Y.
-Refer to Fact 11.5.2.What is the equation for the aggregate expenditure curve for this economy?

• A)AE = 55 + 0.9Y
• B)AE = 55 + 0.5Y
• C)AE = 35 + 0.5Y
• D)AE = 55 + 0.7Y
• E)AE = 45 - 0.5Y

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Definitions:

Job-Order Costing

An accounting method that assigns costs to specific jobs or batches, ideal for customized or made-to-order products.

Manufacturing Overhead

Indirect factory-related costs that are incurred when producing a product, including costs such as utility expenses for the plant.

Cost of Goods Sold

The expenses directly linked to manufacturing the products a company sells, encompassing both the price of materials and the labor expenses directly involved in product creation.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.