The four components of aggregate expenditure (AE) are:

A. consumption, investment, exports, and imports.
B. consumption, investment, government, and capital spending.
C. consumption, investment, government, and net export spending.
D. consumption, internet, government, and capital spending.


C. consumption, investment, government, and net export spending.

Economics

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In the loanable funds market, a shortage of loanable funds occurs when the

A) supply of loanable funds exceeds demand for loanable funds. B) quantity of loanable funds supplied exceeds the quantity of loanable funds demanded. C) demand for loanable funds exceeds supply of loanable funds. D) supply of loanable funds curve shifts rightward. E) quantity of loanable funds demanded exceeds the quantity of loanable funds supplied.

Economics

Using the market shares in the table above, if Big W wants to buy Widgette, the Federal Trade Commission will probably

A) approve the merger because the industry is moderately concentrated and the increase in the Herfindahl-Hirschman index (HHI) is small enough. B) block the merger because the industry is moderately concentrated (HHI between 1,500 and 2,500 ) and the increase in the HHI is too much. C) approve the merger because the industry is highly concentrated (HHI exceeds 2,500 ) but the increase in the HHI is small enough. D) block the merger because the industry is highly concentrated (HHI exceeds 2,500 ) and the increase in the HHI is too much.

Economics

Mountain Water is a natural monopoly. The government decides to regulate Mountain Water by imposing a marginal cost pricing rule. The figure above shows the demand for Mountain Water. Marginal cost is $0.20 per bottle

The price of a bottle of Mountain Water is ________, and ________ thousand bottles are sold per month. A) $0.20; 400 B) $0.50; 250 C) $0.20; 500 D) $1.00; 500

Economics

Economic efficiency is a market outcome in which the marginal benefit to consumers is equal to the marginal cost of production and the sum of consumer surplus and producer surplus is maximized

Indicate whether the statement is true or false

Economics