In a Private Closed Economy, When Aggregate Expenditures Equal GDP

question 116

Multiple Choice

In a private closed economy, when aggregate expenditures equal GDP,

• A) consumption equals investment.
• B) consumption equals aggregate expenditures.
• C) planned investment equals saving.
• D) disposable income equals consumption minus saving.

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Definitions:

After-reaction

The responses or changes in behavior that occur after a specific stimulus or situation has ended.

Social Attachment

The emotional bond that forms between individuals, foundational in the development of personal relationships.

Opponent-process Theory

A psychological and neurological model that explains emotions and motivations as the result of opposite pairs of feelings or drives balancing each other.

Opponent-process Theory

A psychological and neurological model that describes how the perception of one emotional state can directly generate the opposite emotional response over time.