Key idea of the aggregate expenditure model is that in any particular year, the level of GDP is determined mainly by
What will be an ideal response?
the level of aggregate expenditure
You might also like to view...
Answer the next question using the following budget information for a hypothetical economy. Assume that all budget surpluses are used to pay down the public debt. Government SpendingTax RevenuesGDPYear 1$450$425$2,000Year 25004503,000Year 36005004,000Year 46406205,000Year 56805804,800Year 66006205,000The budget deficit in year 3 is
A. $3,050 billion. B. $295 billion. C. $175 billion. D. $100 billion.
Regardless of which consumption bundle in her choice set a consumer chooses, she will spend all of her available income.
Answer the following statement true (T) or false (F)
An advantage of the household survey over the establishment survey of the labor market is that the household survey
A) omits persons employed at newly opened firms. B) is based on actual payrolls, rather than on unverified answers. C) includes the number of self-employed persons. D) includes the number of discouraged workers.
An economy with both a private and public sector is called:
A) a mixed economy. B) a private economy. C) a command economy. D) none of the above.