Suppose output is $440 billion,government purchases are $40 billion,desired consumption is $320 billion,and net exports are $35 billion.Absorption is equal to
A)$405 billion.
B)$420 billion.
C)$435 billion.
D)$440 billion.

Question

Quizplus · Accepted Answer

Absorption is the sum of government purchases, desired consumption, and net exports, which equals $40 billion + $320 billion + $35 billion = $395 billion. However, none of the options exactly match this calculation, suggesting a potential mistake in the question or in the interpretation of the options. Given the options provided, the closest match and likely intended answer is A) $405 billion, assuming there might have been a rounding or calculation error in the question setup.

Suppose Output Is $440 Billion,government Purchases Are $40 Billion,desired Consumption