The Sum of Consumption (C), Investment (I), Government Spending (G)

question 43

Multiple Choice

The sum of consumption (C) , investment (I) , government spending (G) , and net exports (X-M) is called:

• A) autonomous spending.
• B) aggregate expenditures.
• C) Keynesian income
• D) wealth.

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Definitions:

Marginal Product

The additional output that is produced by using one more unit of a particular input, keeping all other inputs constant.

Derived Demand

Refers to the demand for a good or service that results from the demand for another good or service.

Productive Resource

Assets, materials, or inputs used in the production of goods and services, including labor, capital, and natural resources.

Factor Demand

The demand for production inputs (such as labor, land, and capital) by firms, determined by their need to produce goods and services.