In the long run,if an economy's consumption spending is $5 trillion,its planned investment is $2 trillion,government spending is $1 trillion,net tax revenue is $1 trillion,and household savings are $2 trillion,total output should be
A) $3 trillion
B) $5 trillion
C) $7 trillion
D) $8 trillion
E) $11 trillion

Question

Quizplus · Accepted Answer

In the long run, total output (GDP) is equal to the sum of consumption, investment, and government spending. Here, consumption is $5 trillion, investment is $2 trillion, and government spending is $1 trillion, totaling $8 trillion.

In the Long Run,if an Economy's Consumption Spending Is $5