Which of the Following Is the Basic Equation Underlying Aggregate $C _ { a } + I _ { g } + X _ { n } + G = G D P$

question 138

Multiple Choice

Which of the following is the basic equation underlying aggregate expenditures?

• A) MV = PQ
• B) AS = AD
• C) Saving = Income ?Consumption
• D) \(C _ { a } + I _ { g } + X _ { n } + G = G D P\)

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Definitions:

Authorized Stock

The amount of stock that a corporation is authorized to sell as indicated in its charter.

Corporate Charter

A legal document issued by a governmental authority that establishes a corporation and outlines its rights and obligations.

Initial Capital

The amount of money used to start a business or investment.

Owners' Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of shareholders or owners.