In the Aggregate Expenditures Model, Equilibrium GDP in a Private

question 165

Multiple Choice

In the aggregate expenditures model, equilibrium GDP in a private closed economy is indicated by:

• A)the equality of saving and planned investment.
• B)the intersection of aggregate expenditures and the 45-degree line.
• C)the absence of unplanned changes in inventories.
• D)all of the above.

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Definitions:

Excise Tax

A tax charged on specific goods and services, such as alcohol and tobacco, usually to discourage their use or generate revenue.

Direct Tax

A tax levied directly on an individual or an organization's income or wealth, such as income tax or property tax.

Local Property Taxes

Taxes imposed by local governments based on the assessed value of property, primarily real estate, used to fund local services such as schools, roads, and police.

Industrial Countries

Nations with developed economies characterized by significant industrial activity and high income per capita.