In an Economy Without a Government and Without International Transactions,aggregate

question 52

Multiple Choice

In an economy without a government and without international transactions,aggregate expenditure at each level of income is equal to:

• A)consumption plus saving.
• B)planned investment plus saving.
• C)disposable income plus the price level.
• D)consumption plus planned investment.
• E)planned investment minus saving.

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Definitions:

Determinant of Supply

Factors that affect the quantity of a good or service that producers are willing to sell at a given price, such as production technology, input prices, and number of sellers.

Technology of Production

The methods, processes, and systems used to produce goods and services, often focusing on efficiency and innovation.

Cost of Production

The total amount of money or resources spent to produce a good or provide a service, including materials, labor, and overhead costs.

Suppliers' Expectations

The assumptions or beliefs that suppliers have about future market conditions, which can influence their pricing and production decisions.