Multiple Choice
Consider the equation: AE = C + I + G + (X - IM) .Which of the following statements correctly describes this sum?
A) This summation tells us total desired expenditures on domestically produced output.
B) It is a summation of actual expenditures and is equivalent to GDP.
C) This summation of planned expenditures is equal to actual nominal GDP.
D) It is a summation of planned expenditures and is always equal to real GDP.
E) It is a summation of the desired expenditures of domestic households,firms and government.
Correct Answer:
Verified
Related Questions
Q2: Consider the consumption function in our macro
Q3: In each of the four expenditure categories,national
Q4: The percentage of disposable income that is