Suppose That GDP Is Equal to 1000,national Saving Is Equal

question 14

Multiple Choice

Suppose that GDP is equal to 1000,national saving is equal to 200,the current account deficit is equal to 100,and the government budget deficit is equal to 50. Investment must equal

• A) 150.
• B) 200.
• C) 250.
• D) 300.

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Definitions:

ATC

The total cost per unit of production, calculated by dividing the overall production cost by the number of units produced.

Production Function

A production function describes the relationship between inputs used in production and the output generated from those inputs.

Law Of Diminishing Marginal Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other inputs remain constant.

Metamucil

Metamucil is a fiber supplement used to treat constipation and improve overall digestive health by adding bulk to the stool.