Which of the Following Statements Is True

question 158

Multiple Choice

Which of the following statements is true?

• A) investment = disposable income + consumption
• B) saving = personal income - consumption
• C) saving = disposable income - consumption
• D) saving = personal income + consumption

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Definitions:

Equilibrium GDP

The level of output where the total quantity of goods and services produced equals the total quantity of goods and services demanded.

Full Employment

Full Employment is a condition where all available labor resources are being used in the most economically efficient way, with minimal unemployment.

Savings Exceeds Investment

Describes a situation in which the amount of income saved by individuals or entities surpasses the amount being invested, which can indicate caution or a lack of attractive investment opportunities.

Keynes

John Maynard Keynes was a British economist whose ideas, known as Keynesian economics, had a major impact on modern economic and political theory and on fiscal policies of governments.