If Equilibrium Output in an Open Economy Is $1000 Billion,and

question 59

Multiple Choice

If equilibrium output in an open economy is $1000 billion,and consumption is $700 billion at that level of real output,then:

• A)positive unplanned investment must be occurring
• B)net exports must be $300 billion
• C)G + I + X must equal $300 billion
• D)G + I + (X-M) must equal $300 billion
• E)G + I must equal $300 billion

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Definitions:

Service Department

A segment of a company that provides support functions to the company's primary activities, such as maintenance or IT services.

Joint Cost

A cost that is incurred in the production of multiple goods or services where the cost cannot be attributed to individual products easily.

Physical Quantities

Measures of inventory that are based on physical count or volume, such as units, liters, or kilograms.

Investment Center

A division or unit within an organization that is responsible for generating its own revenue and controlling its costs, allowing it to be evaluated as a standalone entity for performance assessment.