One Reason Why Consumption Accounts for More of GDP in the U.S.than

question 99

Multiple Choice

One reason why consumption accounts for more of GDP in the U.S.than it does in Canada is

• A)Americans are more materialistic.
• B)spending on health care is often counted as consumption in the U.S.and not in Canada.
• C)Americans are less concerned about the future than Canadians.
• D)there is less for consumers to buy in Canada.
• E)Canadian save much more than Americans.

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Definitions:

Equilibrium

The state of the market when supply and demand are equal, ensuring stable prices.

Equilibrium Quantity

Equilibrium Quantity is the quantity of goods or services that is supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded in a market.

Increase in Supply

A situation in which the quantity of a good or service that producers are willing and able to offer for sale rises, holding all else equal.

Increase in Demand

Occurs when more of a good or service is sought by consumers at each and every price, often represented by a rightward shift of the demand curve.