3. Let C stand for consumption spending, I for investment, G for government purchases, X for exports, IM for imports, DI for disposable income, and NT for net taxes Consider the following identity C+I+G+ (X- IM) = DI + NT Which of the following best characterizes the above identity? a) National income must equal domestic product b) National income must equal the total amount of leakages from the nation's flow of income and expenditures c) Domestic product must equal the total amount of injections into the nation's flow of income and expenditures. d) Domestic product must equal the total amount of leakages from the nation’s flow of income and expenditures.

3. Let C stand for consumption spending, I for investment, G for government purchases, X for exports, IM for imports, DI for disposable income, and NT for net taxes Consider the following identity C+I+G+ (X- IM) = DI + NT Which of the following best characterizes the above identity? a) National income must equal domestic product b) National income must equal the total amount of leakages from the nation's flow of income and expenditures c) Domestic product must equal the total amount of injections into the nation's flow of income and expenditures. d) Domestic product must equal the total amount of leakages from the nation’s flow of income and expenditures.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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