Suppose That in a Closed Economy GDP Is 10,000, Consumption

question 31

Multiple Choice

Suppose that in a closed economy GDP is 10,000, consumption is 6500, and taxes are 2000. What value of government expenditures would make national saving equal 1000?

• A)2500
• B)3500
• C)7500
• D)9000

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Definitions:

Disgruntled Employee

An employee who is discontented or dissatisfied with their job, potentially leading to reduced productivity or morale in the workplace.

Vacation Pay

Compensation for employees for time not worked due to vacation, accounted for by employers as a liability until used.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Average Repair Cost

The mean cost incurred for repairing an asset over a certain period, calculated by dividing the total repair costs by the number of repairs.