Multiple Choice
The income-expenditure identity is best paraphrased as
A) all spending generates income.
B) all income is spent.
C) all profits are used for investment spending.
D) on average, consumers cannot save.
E) on average, government can spend no more than what it collects in income taxes.
Correct Answer:
Verified
Correct Answer:
Verified
Q44: Investment spending is<br>A)less volatile than GDP.<br>B)less volatile
Q45: Suppose that g1 represents the ratio
Q46: The expenditure approach to calculating GDP includes<br>A)all
Q47: Intermediate goods are<br>A)not a consumption good.<br>B)purchased by
Q48: The components of investment expenditures include<br>A)investment in
Q50: Gross domestic product is defined as<br>A)the value
Q51: Suppose that the government collects $3 million
Q52: Inventory investment consists of<br>A)goods in process, raw
Q53: the three approaches to measuring GDP are
Q54: Problems with interpreting the unemployment rate as