The Components of Aggregate Expenditure That Are Influenced by Real

question 142

Multiple Choice

The components of aggregate expenditure that are influenced by real GDP are

• A)investment, exports, and imports.
• B)consumption expenditure, government expenditure, investment, and imports.
• C)consumption expenditure, investment, and imports.
• D)consumption expenditure and imports.
• E)wages, transfer payments, and government expenditure.

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Definitions:

Marginal Benefit

The additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product or service.

Marginal Cost

The increase or decrease in the total cost that arises when the quantity produced is incremented by one unit.

Marginal Value

Marginal value represents the additional satisfaction or utility a consumer receives from consuming one more unit of a good or service, influencing their decision on how much of a product to purchase.