In the Aggregate Expenditures Model, If Real GDP Equals $700

question 42

Multiple Choice

In the aggregate expenditures model, if real GDP equals $700 billion and aggregate expenditures equal $400 billion,

• A) consumption plus investment equals $300 billion.
• B) planned investment equals $300 billion.
• C) investment plus saving equals $300 billion.
• D) unplanned inventory accumulation equals $300 billion.

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Definitions:

Merchant

An individual or company involved in the wholesale purchase and retail sale of goods for profit.

Purchaser

An entity or person who buys goods or services for consideration.

Transferor

The party in a transaction who transfers or conveys assets, rights, or interests to another, known as the transferee.

Title

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