The Following Information Is for a Closed Economy

question 73

Multiple Choice

The following information is for a closed economy:

-Refer to the above information.If government now spends $80 billion at each level of GDP and taxes remain at zero,the equilibrium GDP:

• A) will rise to $700.
• B) will rise to $600.
• C) will rise to $500.
• D) may either rise or fall.

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Definitions:

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense since the asset was put into use.

Net Income

The amount of profit left after deducting all costs, taxes, and expenses from total revenue.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense over its useful life.

Cash Dividends

Payments made by a corporation to its shareholder members, typically in the form of cash, as a distribution of profits.