Using the Following Information on a Hypothetical Economy in Equilibrium,calculate

question 24

Multiple Choice

Using the following information on a hypothetical economy in equilibrium,calculate total output for 2008.
$\begin{array}{|l|l}\text { Consumption Spending } & \$ 3.5 \text { trillion } \\\hline \text { Net Taxes } & \$ 2.7 \text { trillion } \\\hline \text { Household Saving } & \$ 2.5 \text { trillion } \\\hline \text { Investment Spending } & \$ 2.2 \text { trillion } \\\hline \text { Government Purchases } & \$ 3.0 \text { trillion } \\\hline \text { Exports } & \$ 1.1 \text { trillion } \\\hline \text { Imports } & \$ 1.1 \text { trillion }\end{array}$

Total output for 2008 is

• A) $5.2 trillion
• B) $5.7 trillion
• C) $8.4 trillion
• D) $8.7 trillion
• E) $13.9 trillion

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Definitions:

Express Warranty

is a seller’s promise or guarantee that a product will meet certain quality and reliability standards, explicitly stated in the contract or sales agreement.

Credit

The ability of a consumer to obtain goods or services before payment, based on the trust that payment will be made in the future.

Sample

A portion, piece, or segment taken from something larger to represent the quality, style, or nature of the whole.

Merchantability

An implied warranty that goods sold by a merchant are reasonably fit for the general purpose for which they are sold.