Most of the Change from 1980 to 1987 in U

question 183

Multiple Choice

Most of the change from 1980 to 1987 in U.S.net capital outflow as a percent of GDP was due to a(n)

• A)decrease in U.S.investment.
• B)decrease in U.S.national saving.
• C)increase in U.S.investment.
• D)increase in U.S.national saving.

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Definitions:

Aggregate Demand Curve

A graphical representation showing the relationship between the overall price level in the economy and the total demand for goods and services at that price level.

Investment

The purchase of goods that are not consumed today but used in the future to create wealth, including machinery, buildings, or equipment for production.

Income

is the money received by individuals or entities, typically in the form of wages, salaries, rent, interest, dividends, or profits, for providing labor, capital, or resources.

Aggregate Expenditure Line

The aggregate expenditure line is a graphical representation in macroeconomics that shows all planned expenditures of an economy at different levels of income or GDP, indicating total spending on goods and services in an economy.