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:

Monthly Standard Deviation

A statistical measure that quantifies the variability or volatility of returns over a monthly period.

Cash Limit

Typically refers to the maximum amount of cash or cash equivalent that a person or entity can withdraw or use under certain conditions.

Monthly Disburses

This refers to the amount of money a company pays out on a monthly basis, covering expenses such as salaries, utilities, and rent.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.