The Quantity of Real GDP Demanded Is Composed of the Purchases

question 115

Multiple Choice

The quantity of real GDP demanded is composed of the purchases of

• A)households and net exporters only.
• B)firms, bondholders, and net exporters only.
• C)firms and governments only.
• D)consumers, firms, governments, and net exporters.
• E)consumers, firms, and governments only.

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Definitions:

Net Realizable Value

The estimated selling price of goods minus the sum of the cost of completion and the costs necessary to make the sale.

Allowance for Uncollectibles

An accounting provision made for accounts receivable that may not be collected due to customer defaults or other reasons.

Accounts Receivable Balances

The total amount of money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Cash Flow Statement

A cash flow statement is a financial document that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.