All Figures in the Table Below Are in Billions of Dollars

question 115

Multiple Choice

All figures in the table below are in billions of dollars. Refer to the above data. If this economy were closed to international trade, then the equilibrium GDP and the multiplier would be:

• A) $500 billion and 5
• B) $500 billion and 4
• C) $600 billion and 5
• D) $600 billion and 4

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Definitions:

Financial Statements

Reports that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.

Balance Sheet

An account showing the assets, liabilities, and equity of shareholders of a firm on a specific date.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

Manufacturing Overhead

This consists of all the indirect costs related to manufacturing that cannot be directly traced to specific units produced, such as electricity for the factory or maintenance expenses.