In the Simplest Macroeconomic Model, with a Closed Economy and No

question 61

Multiple Choice

In the simplest macroeconomic model, with a closed economy and no government, the aggregate expenditure (AE) function is the sum of

• A)desired consumption and desired investment.
• B)consumption and disposable income.
• C)actual consumption and actual investment.
• D)saving and desired investment.
• E)consumption and saving.

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Definitions:

Milliliter

A unit of volume in the metric system, equivalent to one-thousandth of a liter.

Gram

An alternative definition: A basic unit of weight in the metric system equivalent to approximately 0.035 ounces.

Milliliters

A metric system volume unit that equals one thousandth of a liter.

Liters

A unit of volume in the metric system, equivalent to 1,000 cubic centimeters or approximately 0.26 gallons.