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:

White-Collar Crime

Non-violent criminal activities committed by individuals, businesses, or government officials typically involving financial deception or fraud.

Distinguished

Characterized by excellence or distinction; noted for significant achievement.

Other Crimes

Evidence of a defendant's past wrongdoings or criminal acts that can be introduced in court to show a pattern of behavior or to prove motive, opportunity, intent, or preparation.

Cyber Terrorist

A hacker whose intention is the exploitation of a target computer or network to create a serious impact, such as the crippling of a communications network or the sabotage of a business or organization, which may have an impact on millions of citizens if the terrorist’s attack is successful.