The Table Given Below Shows the Real GDP, Aggregate Expenditures

question 104

Multiple Choice

The table given below shows the real GDP, aggregate expenditures, saving, and imports of an economy.?

-Refer to Table 10.4. Suppose the economy is currently in equilibrium and has a potential GDP of $6,000. The current GDP gap equals _____.

• A) $400
• B) $1,000
• C) $2,000
• D) $3,000
• E) $6,000

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Definitions:

Payroll Taxes

Taxes imposed on employers and/or employees, and are based on the salary or wages of the employee.

Payroll Tax

Contributions demanded from either employees or employers, frequently calculated based on the salaries that staff are awarded by their employers.

Personal Income Tax

A tax levied on an individual's total personal income, taking into account wages, salaries, and other sources of income.

Federal Government Spending

Expenditures by the federal government on goods, services, and obligations, including defense, welfare, and public works.