If There Is No Government and No Foreign Sector in the Economy

question 159

Multiple Choice

If there is no government and no foreign sector in the economy

• A) personal income and disposable personal income are unequal.
• B) international trade is an important component of total spending.
• C) gross domestic product equals consumption plus investment.
• D) budget and trade deficits are important parts of the model of the economy.

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Definitions:

Dictate

To give orders or instructions with authority, often without considering others' opinions or desires.

Facilitate

To make an action or process easier by providing assistance or guidance.

Systems Dynamics

A method for comprehending the nonlinear dynamics of intricate systems over time through the use of stocks, flows, internal feedback mechanisms, and time delays.

Cyclical Causality

A concept in systems thinking where causes and effects create feedback loops that influence each other over time.