Suppose the Economy Is Closed with National Saving of $3

question 93

Multiple Choice

Suppose the economy is closed with national saving of $3 trillion,consumption of $10 trillion,and government purchases of $4 trillion.What is GDP?

• A)$3 trillion
• B)$9 trillion
• C)$11 trillion
• D)$17 trillion

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Definitions:

Fixed Costs

Expenses that do not change with the amount of goods or services produced, such as rent or salaries.

Marginal Costs

Refers to the cost added by producing one extra item of a product, emphasizing its role in decision making regarding production levels.

Variable Costs

Costs that change in proportion to the level of activity or volume of production in a business.

Total Fixed Costs

The total of all expenses that stay the same no matter the amount of production or output.