According to the Circular-Flow Diagram GDP

question 14

Multiple Choice

According to the circular-flow diagram GDP

• A)can be computed as the total income paid by firms or as expenditures on final goods and services.
• B)can be computed as the total income paid by firms,but not as expenditures on final goods and services.
• C)can be computed as expenditures on final goods and services,but not as the total income paid by firms.
• D)cannot be computed as either total income paid by firms or expenditures on final goods and services.

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Definitions:

Money Supply

The sum of all financial resources available in an economy at a given moment, encompassing cash, coins, and funds in checking and savings accounts.

Growth Rate

The rate at which a company's or country's economic output or Gross Domestic Product (GDP) increases over a specified period.

Short-Run Outcomes

Results or consequences occurring within a brief time period following specific events or decisions in economics or business.

Price Level

A measure of the average prices of goods and services in an economy, indicating the purchasing power of the currency and the inflation rate.