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You are given the following information about aggregate demand at the existing price level for an economy: (1) consumption = $500 billion; (2) investment = $50 billion; (3) government purchases = $100 billion; and (4) net export = $20 billion. If the full-employment level of GDP for this economy is $620 billion, then what combination of actions would be most consistent with closing the GDP-gap here?
Sales
Sales refer to the transactions where goods or services are exchanged for money, reflecting the revenue generating activities of a business.
Implicit Costs
The opportunity costs that are not directly paid for in cash but represent the loss of alternative benefits when resources are used for a particular purpose.
Explicit Costs
Direct, out-of-pocket payments for goods and services that are used in the production of other goods or services.
Accounting Profit
The financial profit of a business calculated by subtracting total expenses from total revenue, as shown in the company's income statement.
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