For an Economy, Aggregate Demand Equals

question 82

Multiple Choice

For an economy, aggregate demand equals:

• A) consumption plus investment plus government spending plus exports.
• B) consumption plus investment plus government spending plus (exports minus imports).
• C) consumption plus investment plus (taxes minus transfers) plus (exports minus imports).
• D) consumption plus investment plus government spending plus net exports (imports minus exports).

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Definitions:

Sample Points

Individual items or cases from a larger population used in a statistical sample for analysis.

Sample Space

The set of all possible outcomes or results in a probability experiment.

Mutually Exclusive

A statistical term describing events that cannot happen at the same time; each occurrence is independent and prevents any other from happening concurrently.

P(A ∩ B)

Represents the probability of both event A and event B occurring simultaneously.