If GDP Is at an Equilibrium Level in a Closed

question 29

Multiple Choice

If GDP is at an equilibrium level in a closed economy,

• A)C + I + G = GDP or National Income.
• B)savings will be less than planned investment.
• C)unplanned inventory accumulation will equal planned inventory accumulation.
• D)C + T - G = GDP or National Income.

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Definitions:

Fair Market Value

The price at which an asset would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.

Repair Shop

A business dedicated to fixing and maintaining vehicles, electronics, or other machinery.

Goods In Bailment

Purchased goods that are in some kind of storage under the control of a third party, such as a warehouseman.

Storage

The action or method of storing goods, data, or information for future use.