At the Equilibrium Level of Real GDP, Total Production Equals

question 57

Multiple Choice

At the equilibrium level of real GDP, total production equals total:

• A) saving.
• B) investment.
• C) net exports.
• D) spending.

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Definitions:

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, showing how much profit a company makes on sales.

Net Income

The sum a company holds as profit once it has subtracted expenses and taxes from its aggregate revenue.

Net Sales

The amount of sales revenue left after deducting sales returns, allowances, and discounts.

Cash Basis

An accounting method where revenues and expenses are recorded only when cash is received or paid, respectively.