In a Mixed Open Economy,if Aggregate Expenditures Exceed GDP

question 7

Multiple Choice

In a mixed open economy,if aggregate expenditures exceed GDP:

• A) I_g + X + G = C_a.
• B) C_a + I_g + X_n + G < domestic output.
• C) I_g > S.
• D) I_g + X + G > S_a + M + T.

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Definitions:

Loan

A sum of money borrowed that is expected to be paid back with interest over a specified period.

Total Cost

The sum of all costs associated with the production of goods or services, including fixed and variable costs.

Mud Statues

Sculptures or figures crafted from mud, often associated with certain cultural traditions or artistic practices.

Variable Cost

Outlays that adjust in accordance with the volume of production or output, like materials and labor costs.