Refer to the Graph Above for a Private Closed Economy

question 80

Multiple Choice

Refer to the graph above for a private closed economy. The equilibrium level of GDP in this economy is:

• A) $150 billion
• B) $250 billion
• C) $350 billion
• D) $450 billion

---

Definitions:

Balance Sheet

A balance sheet is a financial statement that provides a snapshot of a company's financial position, showing assets, liabilities, and equity at a specific point in time.

Deduction

An amount that is allowed to be subtracted from gross income in order to reduce taxable income, thus lowering the overall tax liability.

Direct Write-Off Method

An accounting method where uncollectible accounts receivable are written off directly against income at the time they are deemed uncollectible.

Uncollectible Accounts

Financial debts deemed unrecoverable from debtors that are often written off as bad debt expense.