-Refer to the Table in the Exhibit

question 130

Multiple Choice

$\begin{array}{l}\text { Schedule for Real GDP, Net Taxes and Government Purchases (Trillions of Dollars) }\\\begin{array}{ccccccccc}\hline \begin{array}{c}\text { Real } \\\text { GDP }\end{array} & \begin{array}{c}\text { Net } \\\text { taxes }\end{array} & \begin{array}{c}\text { Disposable } \\\text { income } \\(Y) \end{array} & \begin{array}{c}\text { Consumption } \\(N T) \end{array} & \begin{array}{c}\text { Saving } \\(Y-N T) \end{array} & \begin{array}{c}\text { Planned } \\\text { investment } \\(S) \end{array} & \begin{array}{c}\text { Net } \\\text { exports } \\(N X) \end{array} & \begin{array}{c}\text { Government } \\\text { purchases } \\(G) \end{array} & \begin{array}{c}\text { Planned } \\\text { aggregate } \\\text { expenditure } \\(C+I+N X+G) \end{array} \\\hline 3.0 & 0.9 & 2.1 & 2.0 & 0.1 & 0.5 & -0.2 & 0.9 & 3.2 \\3.6 & 0.9 & 2.7 & 2.4 & 0.3 & 0.5 & -0.2 & 0.9 & 3.5 \\4.2 & 0.9 & 3.3 & 2.8 & 0.5 & 0.5 & -0.2 & 0.9 & 4.0 \\4.8 & 0.9 & 3.9 & 3.2 & 0.7 & 0.5 & -0.2 & 0.9 & 4.4 \\5.4 & 0.9 & 4.5 & 3.6 & 0.9 & 0.5 & -0.2 & 0.9 & 4.8 \\\hline\end{array}\end{array}$
-Refer to the table in the exhibit.What is the equilibrium level of income?  

• A) where real GDP = nominal GDP 
• B) where real GDP = total planned expenditures 
• C) where disposable income = total planned expenditures 
• D) where government spending equals taxation

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Definitions:

Prepaid Insurance

An asset account that represents insurance payments made in advance for coverage that will be received in the future.

Office Supplies Account

An account used to track expenses related to materials and supplies used in an office environment.

Adjusting Entry

At the closure of an accounting period, entries are documented to attribute earnings and outlays to the span during which they genuinely happened.

Supplies Purchased

Represents the purchase of tangible goods or materials used in the production of goods or for the operation of the company.