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:

Accounts Payable

Liabilities of a company or organization for goods or services that have been received but not yet paid for.

Net Income

The final earnings of a company once expenses and taxes are subtracted from the total revenue.

Operating Activities

Transactions and events that relate to the primary operations of the company, including revenue and expense activities.

Cash Flows

The cash that is moving into and out of a business, representing its operating, investing, and financing activities over a specific period.