Net Exports Is the Key to the Equality of Aggregate

question 7

True/False

Net exports is the key to the equality of aggregate expenditures and aggregate income.

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Definitions:

Sales Revenues

The income received by a company from its sales of goods or services before any expenses are subtracted.

Accounts Payable

An account representing short-term liabilities to suppliers or creditors for goods and services received but not yet paid for.

Inventory

The goods and materials that a business holds for the ultimate goal of resale or production.

Cost of Goods Sold

The immediate expenses connected to the manufacturing of goods a company sells, such as materials and labor.