Table 12-3 -Refer to Table 12-3

question 152

Multiple Choice

Table 12-3
$\begin{array}{|l|c|}\hline \text { Consumption expenditures } & \$ 800 \\\hline \text { Investment expenditures } & 200 \\\hline \text { Government purchases } & 300 \\\hline \text { Exports } & 100 \\\hline \text { Imports } & 200 \\\hline \text { Wages } & 800\\\hline\end{array}$
-Refer to Table 12-3.Consider the data above (in billions of dollars) for an economy: Gross domestic product (in billions of dollars) for this economy equals

• A) $2,200.
• B) $1,600.
• C) $1,400.
• D) $1,200.

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Definitions:

Fixed Budget

A budget that outlines expected revenues and expenses over a specific period, which does not adjust in response to changes in business activity levels.

Static Budget

A budget that does not change or adapt to variations in business activity levels throughout the budgeting period.

Sales Variance Analysis

A financial process used to compare the actual sales against forecasted sales to understand variances and their causes.

Planning

The process of setting objectives, determining strategies to achieve them, and coordinating resources to execute the strategies.