If the Equilibrium Level of GDP in a Private Open

question 74

Multiple Choice

If the equilibrium level of GDP in a private open economy is $1,000 billion and consumption is $700 billion at that level of GDP, then

• A) saving must be $300 billion.
• B) net exports must be $300 billion.
• C) S + C must equal $300 billion.
• D) Ig + Xn must equal $300 billion.

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Definitions:

Labor Price Variance

The difference between the actual cost of labor and the standard cost expected for that labor, used in budgeting and cost management.

Quantity Variance

Quantity variance refers to the difference between the expected and actual quantity of materials or inputs used in the production process, impacting cost.

Standards

Predetermined benchmarks or norms used for measuring performance and setting expectations in various contexts, including production, quality, and accounting.

Budgets

Financial plans that forecast future income, expenditure, and resource allocation, guiding organizational decision-making.