The Circular Flow Model Shows That GDP Can Be Calculated

question 2

Multiple Choice

The circular flow model shows that GDP can be calculated by

• A) both the expenditure and income methods because aggregate expenditure equals aggregate income.
• B) only the expenditure method in which the four components of aggregate expenditure must be measured in the aggregate.
• C) both the expenditure and income methods, even though aggregate expenditure is usually less than aggregate income.
• D) only the income method in which the four components of aggregate income must be measured separately.

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Definitions:

Congressional Reconstruction

A period following the American Civil War where the U.S. Congress implemented and oversaw the reconstruction of the Southern states.

Southern White Resistance

Refers to the opposition by white Southerners to the Reconstruction policies following the Civil War, aiming to restore white supremacy and undermine African American rights.

Union League

An organization established during the American Civil War to support the Union’s cause, promote patriotism, and help finance the war effort.

Black Politics

Refers to the political movements, ideologies, and efforts directed towards advocating for the rights, equality, and empowerment of Black or African-American communities.