In the Equation Y = C + I + G

question 2

Multiple Choice

In the equation Y = C + I + G,

• A)only I is an exogenous variable determined by factors outside the model.
• B)only G is an exogenous variable determined by factors outside the model.
• C)C is an endogenous variable determined by factors inside the model.
• D)I and G are exogenous variables determined by factors outside the model.
• E)A,b,and c

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Definitions:

Operating Cost

The expenses associated with the day-to-day running of a business, such as rent, utilities, and payroll, excluding capital expenditures.

Monthly

Relating to or occurring once a month; often used to describe payments, subscriptions, or reporting periods that happen once per month.

Advertising

The act of calling public attention to products, services, or needs through various forms of media, with the aim of influencing consumer behavior.

Profits

The financial gain obtained when the revenue from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.