In Each of the Four Expenditure Categories,national Income Accounts Measure

question 70

Multiple Choice

In each of the four expenditure categories,national income accounts measure ________ expenditures,while the theoretical model of the economy deals with ________ expenditures.

• A)actual; autonomous
• B)desired; actual
• C)induced; exogenous
• D)endogenous; exogenous
• E)actual; desired

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Definitions:

Spot Rates

The current market price of a financial instrument, commodity, or currency for immediate delivery and payment.

Absolute Purchasing Power Parity

A theory that states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.

Trading Barriers

Restrictions or laws that limit the ability to trade goods, services, or financial instruments across borders or within markets.

Absolute Purchasing Power Parity

A theory that asserts that in the absence of market frictions, identical goods in different countries should have identical prices when expressed in a common currency.