If C Represents Aggregate Consumption, I_d Represents Domestic Investments, G

question 12

Multiple Choice

If C represents aggregate consumption, I_d represents domestic investments, G represents government expenditures, E represents national expenditures on goods and services, X represents foreign demands for exports, and M represents domestic demand for imports, then aggregate demand in an economy equals:

• A)C + I_d + G.
• B)E + C + I_d + (X - M).
• C)C + I_d + G + (X - M).
• D)C + I_d + G + (M - X).

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Definitions:

Need For Affiliation

A person's desire to create and maintain social relationships and bonds with others.

Peak Experience

A term coined by psychologist Abraham Maslow referring to a state of profound and deeply moving experience where one feels a sense of unity and meaningfulness in life.

Instinct Approach

A perspective in psychology that emphasizes innate, biological drives as the primary motivator for behavior.

Primary Drives

Basic, instinctual drives that motivate an organism to fulfill its fundamental needs, such as hunger, thirst, or the need for warmth.