-The Table Above Gives Data for the Nation of Mosh

question 276

Multiple Choice

$$\begin{array} { c c c c c c } \begin{array} { c } \text { Consumption } \\\text { Real GDP, } Y \\\text { (trillions of }\end{array} & \begin{array} { c } \text { Government } \\\text { (trillions of }\end{array} & \begin{array} { c } \text { Investment, I } \\\text { (trillions of }\end{array} & \begin{array} { c } \text { expenditure, } G \\\text { (trillions of }\end{array} & \begin{array} { c } \text { Exports, } X \\\text { (trillions of }\end{array} & \begin{array} { c } \text { Imports, } M \\\text { (trillions of }\end{array} \\2005 \text { dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & 2005 \text { dollars) } \\\hline 0 & 1.00 & 2 & 1 & 1 & 0.50 \\1 & 1.75 & 2 & 1 & 1 & 0.75 \\2 & 2.50 & 2 & 1 & 1 & 1.00 \\3 & 3.25 & 2 & 1 & 1 & 1.25 \\4 & 4.00 & 2 & 1 & 1 & 1.50 \\5 & 4.75 & 2 & 1 & 1 & 1.75 \\6 & 5.50 & 2 & 1 & 1 & 2.00 \\7 & 6.25 & 2 & 1 & 1 & 2.25 \\8 & 7.00 & 2 & 1 & 1 & 2.50 \\9 & 7.75 & 2 & 1 & 1 & 2.75 \\10 & 8.50 & 2 & 1 & 1 & 3.00\end{array}$$
-The table above gives data for the nation of Mosh.If we graphed these data, we would see that when GDP equals

• A) $6 trillion, the AE curve is below the 45° line.
• B) $10 trillion, the 45° line is above the AE curve.
• C) $9 trillion, the AE curve intersects the 45° line.
• D) $4 trillion, the AE curve intersects the 45° line.
• E) $10 trillion, the AE curve intersects the 45° line.

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Definitions:

Indirect Method

A technique used in preparing the cash flow statement, where net income is adjusted for changes in balance sheet accounts to calculate operating cash flow.

Depreciation

The systematic reduction in the recorded cost of a fixed asset to allocate its cost over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Current Asset

An asset that is expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of a business.

Cash Dividends

Payments made by a corporation to its shareholder members from the company's current or retained earnings.