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Using the Following Information on a Hypothetical Economy in Equilibrium,calculate

Question 11

Multiple Choice

Using the following information on a hypothetical economy in equilibrium,calculate total output for 2008.
 Consumption Spending $3.5 trillion  Net Taxes $2.7 trillion  Household Saving $2.5 trillion  Investment Spending $2.2 trillion  Government Purchases $3.0 trillion  Net Exports $0.3 trillion \begin{array}{l|r}\text { Consumption Spending } & \$ 3.5 \text { trillion } \\\hline \text { Net Taxes } & \$ 2.7 \text { trillion } \\\hline \text { Household Saving } & \$ 2.5 \text { trillion } \\\hline \text { Investment Spending } & \$ 2.2 \text { trillion } \\\hline \text { Government Purchases } & \$ 3.0 \text { trillion } \\\hline \text { Net Exports } & -\$ 0.3 \text { trillion }\end{array}

If exports are exactly equal to imports,total output for 2008 is


A) $5.2 trillion
B) $5.7 trillion
C) $8.4 trillion
D) $8.7 trillion
E) $13.9 trillion

Correct Answer:

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