Choose the Best Statement

question 361

Multiple Choice

Choose the best statement.

• A) An increase in compensation of employees increases aggregate income but does not change GDP.
• B) GDP equals aggregate expenditure and equals aggregate income.
• C) An increase in government purchases increases aggregate expenditure but does not change GDP.
• D) GDP always equals aggregate expenditure and sometimes equals aggregate income.

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Definitions:

Funding

The financial resources provided for a project, business, or organization, typically in the form of investments, loans, or grants.

Insight

Deep understanding or realization that comes from a detailed analysis of data, information, or circumstances, often leading to new perspectives or solutions.

Obvious Observation

A statement or fact that is clear, self-evident, or easily understood without the need for detailed explanation.

Potential Solution

A possible method or way to address, solve, or improve a specific problem or challenge.