Refer to the scenario above. What is the national income of the economy?
A) 7,000 B) 10,000 C) 2,000 D) 5,000
Question 2
In a closed economy:
A) consumption is equal to zero. B) investment is equal to zero.
C) government spending is equal to zero. D) net exports is equal to zero.
In a closed economy, without the government, the consumption expenditure equals 5,000 and the investment expenditure equals 2,000.
