The Circular Flow Model Shows That GDP Can Be Calculated

question 1

Multiple Choice

The circular flow model shows that GDP can be calculated by

• A) only the expenditure method in which the four components of aggregate expenditure must be measured in the aggregate.
• B) only the income method in which the four components of aggregate income must be measured separately.
• C) both the expenditure and income methods, even though aggregate expenditure is usually less than aggregate income.
• D) both the expenditure and income methods because aggregate expenditure equals aggregate income.

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Definitions:

Freud

Sigmund Freud, an Austrian neurologist who founded the discipline of psychoanalysis.

MMPI

Minnesota Multiphasic Personality Inventory, a comprehensive standardized test used to assess and diagnose mental health disorders and personality structure.

Raven's Progressive Matrices

A nonverbal group test typically used to measure abstract reasoning and considered a good estimation of fluid intelligence.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, often studied in psychology to understand differences in behavior and mental processes.