In the Circular Flow of Economic Activity

question 326

Multiple Choice

In the circular flow of economic activity

• A) aggregate expenditure measures the dollar value of purchases of factors.
• B) aggregate expenditure measures the dollar value of purchases of final goods and services.
• C) aggregate income measures the dollar value of labor resources only.
• D) aggregate expenditure is measured as it moves through the financial markets.

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Definitions:

Contract Law

A legal framework governing the binding agreements between parties, setting the rules for formation, execution, and enforcement of contracts.

Full Satisfaction

The complete fulfillment or settlement of a debt, obligation, or claim.

Debt

An amount of money borrowed by one party from another, typically under the agreement that it is to be repaid with interest.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise when the other party has reasonably relied on that promise to their detriment.