Which One of the Following Is True in an Open

question 293

Multiple Choice

Which one of the following is true in an open economy with a government sector?

• A) The equilibrium level of real GDP occurs when real net export spending equals zero.
• B) The equilibrium level of real GDP occurs when planned real saving equals government spending.
• C) The equilibrium level of real GDP occurs when total planned real expenditures equal real GDP.
• D) The equilibrium level of real GDP occurs when planned real investment spending is zero.

---

Definitions:

TV Sets

Devices designed to receive and display television broadcasts.

Life Expectancy

The average period that an individual is expected to live based on current mortality and health trends.

Wealth

The abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions.

Latitude

A geographic coordinate that specifies the north-south position of a point on the Earth's surface.