If S = -60 + 0

question 58

Multiple Choice

If S = -60 + 0.25Y and I_g = 60, where S is saving, I_g is gross investment, and Y is gross domestic product (GDP) , then the equilibrium level of GDP is:

• A)$200.
• B)$320.
• C)$360.
• D)$480.

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Definitions:

Marginal Cost

The cost added by producing one additional unit of a product or service, important for decision-making in resource allocation.

Average Total Cost

The total cost of production divided by the quantity of output produced; it includes all fixed and variable costs.

Average Total Cost

The total cost of production divided by the quantity produced, indicating the average cost per unit of output.

Marginal Cost

The added expense incurred from producing an additional unit of a good or service.