In the Circular Flow of Economic Activity

question 326

Multiple Choice

In the circular flow of economic activity

• A) aggregate expenditure measures the dollar value of purchases of factors.
• B) aggregate expenditure measures the dollar value of purchases of final goods and services.
• C) aggregate income measures the dollar value of labor resources only.
• D) aggregate expenditure is measured as it moves through the financial markets.

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Definitions:

Conscience

An inner feeling or voice viewed as acting as a guide to the rightness or wrongness of one's behavior.

Superego

In psychoanalytic theory, the part of the personality responsible for moral standards and self-criticism.

Reality Principle

The recognition, characterizing ego functioning, that we cannot always express or satisfy our id impulses.

Psychodynamic

A method in psychology that prioritizes the thorough investigation of the mental processes driving human behavior, emotions, and feelings, and their association with experiences from early life.