C + I + G + NX equals:
A. the output gap.
B. aggregate expenditure.
C. potential GDP.
D. the income-expenditure multiplier.
Answer: B
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In reality, prices of non-renewable resources have not increased continually according to the model developed in Section 16.3 because of
A) abundance of the resource. B) technological progress changing marginal cost. C) changing market power of producers. D) All of the above.
Which goods did NOT decrease in price between 2000 and 2015?
A. Alcoholic beverages away from home B. Toys C. Televisions D. Personal computers and peripherals
The following is budget information for a hypothetical economy. All data are in billions of dollars.
Refer to the above table. In which year is there a budget surplus?
A. Year 1
B. Year 2
C. Year 4
D. Year 5
Which of the following is a major justification for public aid to agriculture in the United States?
A. The demand for farm products is income elastic B. Technological progress has greatly reduced the demand for farm products C. Farmers sell their products in highly imperfect markets and buy resources in highly competitive markets D. Farmers are subject to extraordinary hazards that are hard to insure against