The Table Given Below Shows the Levels of National Income

question 111

Multiple Choice

The table given below shows the levels of national income (Y) and the corresponding levels of saving (S) , investment (I) , export (X) , and import (M) of an open economy.
Table 10.2
$\begin{array}{l}\begin{array}{|c|c|c|c|c|c|}\hline \boldsymbol{Y} & \boldsymbol{S} & \boldsymbol{I} & \boldsymbol{G} & \boldsymbol{X} & \boldsymbol{M} \\\hline \$ 935 & -\$ 250 & \$ 320 & \$ 40 & \$ 170 & \$ 100 \\\$ 2,100 & \$ 0 & \$ 320 & \$ 140 & \$ 170 & \$ 130 \\\$ 3,320 & \$ 250 & \$ 320 & \$ 200 & \$ 200 & \$ 350 \\\$ 4,800 & \$ 375 & \$ 320 & \$ 240 & \$ 230 & \$ 415 \\\$ 5,230 & \$ 650 & \$ 320 & \$ 320 & \$ 250 & \$ 590 \\\$ 6,300 & \$ 825 & \$ 320 & \$ 340 & \$ 270 & \$ 610 \\\hline\end{array}\\\text { Taxes equal zero }\end{array}$
-Consider the economy described in Table 10.2. At an income level of $2,100:

• A) leakages exceed injections by $800.
• B) total output exceeds aggregate expenditures by $500.
• C) injections exceed leakages by $500.
• D) injections are equal to total output.
• E) aggregate expenditures exceed total output by $500.

---

Definitions:

Control Account

A general ledger account that summarizes the total amounts recorded in various subsidiary ledgers for easier and consolidated reporting.

Accounting System

A comprehensive process of collecting, recording, classifying, and summarizing financial information for business transactions.

Feedback

Measures provided to operational employees or managers on the performance of subunits of the organization. These measures are used by employees to adjust a process or a behavior to achieve goals. See management by exception.

Systems Analysis

The process of studying and analyzing a system to identify its goals and purposes and to create systems and procedures that will achieve them in an efficient way.