The Amount of Consumption That Would Take Place If Real

question 4

Multiple Choice

The amount of consumption that would take place if real GDP were zero is called

• A) induced consumption.
• B) exogenous consumption.
• C) autonomous consumption.
• D) break even consumption.

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Definitions:

Prices

The amount of money required to purchase a good or service, indicating the value placed on it by the market.

Preferences

In economics, this refers to the subjective tastes and likes of individuals, which influence their choices among various goods and services.

Prices

The financial amount expected, required, or supplied as remuneration for an item.

Income

Money received on a regular basis from work, property, investments, business ventures, and other sources, used to fund consumption and savings.