Refer to the Above Diagram Wherein T Is Tax Revenues

question 229

Multiple Choice

Refer to the above diagram wherein T is tax revenues and G is government expenditures.All figures are in billions.The equilibrium level of GDP in this economy:

• A)is $400.
• B)is greater than $400.
• C)is less than $400.
• D)cannot be determined from the information given.

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Definitions:

Retained Earnings

The portion of net income left over after dividends are paid to shareholders, reinvested in the business or used to pay off debt.

Corporate Form

A legal structure for a business recognized as a separate legal entity from its owners, providing limited liability.

Partnership Form

A legal form of business operation between two or more individuals who share management and profits.

Paid-In Capital

Funds raised by a company through the issuance of shares to investors, exceeding the par or stated value of the shares.