In an Open Economy with Government and Demand-Determined Output,an Increase

question 31

Multiple Choice

In an open economy with government and demand-determined output,an increase in the equilibrium level of national income could be caused by

• A)an increase in taxes at all levels of income.
• B)an increase in the desired level of imports at all levels of income.
• C)a decrease in desired consumption at all levels of income.
• D)a decrease in the desired level of saving at all levels of income.
• E)a decrease in government purchases.

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Definitions:

ABC

Activity-Based Costing, a method of costing that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Joint Costs

The costs incurred in a joint manufacturing process.

Split-Off Point

The point in a joint manufacturing process where the joint products become separable.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing more accurate product costing.