Using the following information on a hypothetical economy in equilibrium,calculate total output for 2008. 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.  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

From the graph, we can see that at the point of equilibrium where exports=imports, the GDP (total output) is $8.4 trillion. Therefore, choice C is the correct answer.

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