In a Mixed Open Economy, If Aggregate Expenditures Exceed GDP

question 70

Multiple Choice

In a mixed open economy, if aggregate expenditures exceed GDP,

• A)Ig + X + G = Ca .
• B)Ca + Ig + Xn + G < domestic output.
• C)Ig > S.
• D)I g + X + G > Sa + M + T.

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Definitions:

Pre-industrial Societies

Societies characterized by economies based on agriculture, fishing, and hunting, with limited technology and industrial development.

Real GDP

GDP corrected for inflation; actual production.

Worked Hours

The total number of hours spent by employees in performing their job duties within a specific period.

Gross Savings

The total amount of savings generated within an economy, representing the difference between income and consumption.