In Equilibrium, Where Y = GDP, C = Consumption, G

question 9

Multiple Choice

In equilibrium, where Y = GDP, C = consumption, G = government spending, E = exports, and M = imports, Y - C - G - E - M) must equal

• A) private saving.
• B) public saving.
• C) the sum of private and public saving.
• D) the sum of private and foreign saving.
• E) the sum of public, private, and foreign saving.

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Definitions:

Wealth

The abundance of valuable financial assets or physical possessions which can include money, properties, and natural resources.

Wages

Payments received by employees for their labor or services, typically calculated on an hourly, daily, or weekly basis.

Salaries

Compensation received by employees for their labor or services, typically on an annual, monthly, or hourly basis.

Rents

in economics, refers to the income generated from leasing properties or land; can also refer to excess profits not attributed to investment or innovation.