All Figures in the Table Below Are in Billions of Dollars

question 123

Multiple Choice

All figures in the table below are in billions of dollars. Refer to the above data. If this economy were an open economy, the equilibrium GDP will be:

• A) $650 billion
• B) $600 billion
• C) $550 billion
• D) $500 billion

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Definitions:

Weighted Average Method

A costing method that calculates the cost of inventory based on the weighted average of the cost of items available for sale, used in accounting.

FIFO Method

"First In, First Out," an inventory valuation method where the oldest inventory items are sold first.

Abnormal Spoilage

Wastage that occurs outside of the normal production process, often due to unusual or unforeseen circumstances.

Loss

A financial situation where expenses exceed revenues, leading to a negative outcome for the business.