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

Question

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

Quizplus · Accepted Answer

In a closed economy, output (Y) = Consumption (C) + Investment (I) + Government Purchases (G). Using the given values, we get:
Y = C + I + G
Y = $3.5 trillion + $2.2 trillion + $3.0 trillion
Y = $8.7 trillion
Therefore, the total output for 2008 is $8.7 trillion. Choice D is the correct answer.

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