-The Above Table Gives Data for the Nation of Mojo

question 125

Multiple Choice

$$\begin{array} { c c c c c c } \begin{array} { c } \text { RealGDP, } Y \\\text { (trillions of }\end{array} & \begin{array} { c } \text { Consumption } \\\text { expenditure, C }\end{array} & \begin{array} { c } \text { Government } \\\text { (trillions of } \\\text { (trillions of }\end{array} & \begin{array} { c } \text { expenditure, } G \\\text { (trillions of }\end{array} & \begin{array} { c } \text { Exports, } X \\\text { (trillions of }\end{array} & \begin{array} { c } \text { Imports, } M \\\text { (trillions of }\end{array} \\2005 \text { dollars) } & 2005 \text { dollars) } & 2005 \text { dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & 2005 \text { dollars) } \\\hline 0.00 & 0.00 & 1.75 & 1.00 & 0.75 & 0.00 \\3.00 & 2.00 & 1.75 & 1.00 & 0.75 & 0.75 \\6.00 & 4.00 & 1.75 & 1.00 & 0.75 & 1.50 \\9.00 & 6.00 & 1.75 & 1.00 & 0.75 & 2.25 \\12.00 & 8.00 & 1.75 & 1.00 & 0.75 & 3.00\end{array}$$
-The above table gives data for the nation of Mojo.At what level of real GDP is the economy at equilibrium expenditure?

• A) $3.0 trillion
• B) $6.0 trillion
• C) $9.0 trillion
• D) $12.0 trillion
• E) more than $12.0 trillion.

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Definitions:

Manufacturing Overhead

All manufacturing costs other than direct materials and direct labor incurred to produce goods, including utilities, depreciation, and maintenance of equipment.

Underapplied

A situation in cost accounting where the allocated manufacturing overhead costs are less than the actual overhead expenses incurred.

Overapplied

A condition in costing where the allocated or applied costs exceed the actual costs incurred.

Adjusted Cost

The revised basis of an asset for tax purposes after adjusting for factors such as depreciation or improvements.