Refer to Table 1. At the equilibrium level of income, leakages equal ________ billion. Group of answer choices$100$300$200$0 **Table: Economic Indicators in Billions of Dollars**| **Output (Income)** | **Consumption Spending** | **Net Taxes** | **Investment Spending** | **Government Spending** ||---------------------|--------------------------|---------------|------------------------|------------------------|| 400 | 400 | 100 | 200 | 100 || 800 | 700 | 100 | 200 | 100 || 1,200 | 1,000 | 100 | 200 | 100 || 1,600 | 1,300 | 100 | 200 | 100 || 2,000 | 1,600 | 100 | 200 | 100 |**Explanation:**This table displays economic data for different levels of output (income). All figures are in billions of dollars. It includes five columns representing various economic activities:1. **Output (Income)**: Represents the total income or production in the economy.2. **Consumption Spending**: The amount spent by households on goods and services.3. **Net Taxes**: Total taxes minus any government transfers, which remain constant at 100 billion.4. **Investment Spending**: Expenditures on goods used for future production, also constant at 200 billion.5. **Government Spending**: Expenditures by the government on goods and services, constant at 100 billion.The table illustrates how consumption spending increases with rising output, while net taxes, investment, and government spending remain constant.

At equilibrium, the leakages equal injections. When the planned injections exceed leakages, there will be an increase in outputAt equilibrium: Output (Income) (Y) = Consumption spending (C) + Investment spending (I) + Government spending (G) When Output (Income) (Y) = $1,600 Consumption spending (C) = $1,300 Investment spending (I) = $200 Government spending (G) = $100 At Output (Income) (Y) = $1,600; Y = C + I + G Thus it will be the equilibrium level of output will be $1600 billion Saving (S) = Y - T - C = $1600 billion - $100 billion - $1300 billion = $200 billion Leakage = S + T = $200 billion + $100 billion = $300 billion Thus option-b will be the correct answerOption-a will be incorrect. At equilibrium income level the leakages equal $300 billion Option-c will be incorrect. At equilibrium income level the leakages equal $300 billion Option-d will be incorrect. At equilibrium income level the leakages equal $300 billion

Answered: Refer to Table 1. At the equilibrium…

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Refer to Table 1. At the equilibrium level of income, leakages equal ________ billion. Group of answer choices $100 $300 $200 $0

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

Refer to Table 1. At the equilibrium level of income, leakages equal ________ billion.

Group of answer choices

$100

$300

$200

**Table: Economic Indicators in Billions of Dollars**

| **Output (Income)** | **Consumption Spending** | **Net Taxes** | **Investment Spending** | **Government Spending** |
|---------------------|--------------------------|---------------|------------------------|------------------------|
| 400 | 400 | 100 | 200 | 100 |
| 800 | 700 | 100 | 200 | 100 |
| 1,200 | 1,000 | 100 | 200 | 100 |
| 1,600 | 1,300 | 100 | 200 | 100 |
| 2,000 | 1,600 | 100 | 200 | 100 |

**Explanation:**

This table displays economic data for different levels of output (income). All figures are in billions of dollars. It includes five columns representing various economic activities:

1. **Output (Income)**: Represents the total income or production in the economy.
2. **Consumption Spending**: The amount spent by households on goods and services.
3. **Net Taxes**: Total taxes minus any government transfers, which remain constant at 100 billion.
4. **Investment Spending**: Expenditures on goods used for future production, also constant at 200 billion.
5. **Government Spending**: Expenditures by the government on goods and services, constant at 100 billion.

The table illustrates how consumption spending increases with rising output, while net taxes, investment, and government spending remain constant.

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