Comparing Aggregate Expenditure and Aggregate Incomes Shows That

question 4

Multiple Choice

Comparing aggregate expenditure and aggregate incomes shows that

• A) they are equal.
• B) aggregate expenditure is usually greater than aggregate income.
• C) aggregate income can not equal aggregate expenditure if we have any savings.
• D) aggregate income is usually greater than aggregate expenditure.

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Definitions:

Property Rights

Rights to own, utilize, and manage assets legally.

Production Possibilities Curve

A visual diagram demonstrating the highest potential production pairings of two products or services that can be attained by an economy when every resource is used completely and effectively.

Technological Advance

The introduction or improvement of technology, leading to increased efficiency, productivity, or new capabilities within society or specific industries.

Production Possibilities Curve

The production possibilities curve illustrates the maximum possible output combinations of two goods that an economy can achieve when all resources are fully and efficiently utilized.