Leakages are
a. negative tax revenues
b. government spending on nonessential goods and services
c. amounts of income earned, but not spent, by the household sector during a given year
d. a sign that an economy's total output is excessive
e. sums spent by sectors other than households
C
You might also like to view...
A good proxy for the flow of consumption services would be
A) aggregate consumption. B) consumption of services and consumption of durables. C) consumption of durables and consumption of nondurables. D) consumption of nondurables and consumption of services.
A bond purchaser bought a bond from which she receives $800 a year from the issuer. If the face value of the bond is __________ then the coupon rate is __________
A) $10,000; 10 percent B) $8,000; 8 percent C) $10,000; 8 percent D) $8,000; 12 percent E) none of the above
When the actual rate of inflation exceeds the expected rate:
A. the unemployment rate will temporarily rise. B. firms will experience rising profits and thus increase their employment. C. the actual rate of inflation will fall. D. nominal wages will decline.
When GDP is measured in "current prices" it is known as the
A. nominal GDP. B. real GDP. C. real GNP. D. nominal GNP.