The Key Idea of the Aggregate Expenditure Model Is That

question 85

Multiple Choice

The key idea of the aggregate expenditure model is that in any particular year,the level of GDP is determined mainly by

• A)investment spending.
• B)export spending.
• C)government spending.
• D)the level of aggregate expenditure.

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Definitions:

Taxes

Compulsory charges imposed by governments on individuals or entities to fund public services and infrastructure.

Investing Activity

Transactions involving the purchase and sale of long-term assets and investments, part of a company's cash flow statement that indicates how funds are used and generated.

Corporation

Business organization that is both a legal and accounting entity.

Operating Activities

Business activities directly related to the production and delivery of goods and services, which are reflected in the cash flow statement.