6. National accounting identities Let C stand for consumption spending, I for investment, G for government purchases, X for exports, M for imports, DI for disposable income, and NT for net taxes. Consider the following identity and answer the questions that follow. C+I+G+(X-M) = DI + NT Which of the following best characterizes the above identity? O Aggregate income must equal domestic product. O Aggregate income must equal the total amount of leakages from the nation's flow of income and expenditures.

6. National accounting identities Let C stand for consumption spending, I for investment, G for government purchases, X for exports, M for imports, DI for disposable income, and NT for net taxes. Consider the following identity and answer the questions that follow. C+I+G+(X-M) = DI + NT Which of the following best characterizes the above identity? O Aggregate income must equal domestic product. O Aggregate income must equal the total amount of leakages from the nation's flow of income and expenditures.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

6. National accounting identities
Let C stand for consumption spending, I for investment, G for government purchases, X for exports, M for imports, DI for disposable income, and NT
for net taxes.
Consider the following identity and answer the questions that follow.
C+I+ G+ (X-M) = DI + NT
Which of the following best characterizes the above identity?
O Aggregate income must equal domestic product.
O Aggregate income must equal the total amount of leakages from the nation's flow of income and expenditures.
O Domestic product must exceed aggregate income.
O Domestic product must equal the total amount of injections into the nation's flow of income and expenditures.
True or False: Imports must equal exports.
O False
O True

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Table 7-3 (in $ billion) consumption $1,100.00 %3D inventory investment = $460.00 purchased of new capital goods = $560.00 government purchases = $300.00 %3D exports = $20.00 %3D imports $33.00 %D purchased of new residential housing = $58.00 %3D Refer to Table 7-3, GDP equals O $2,165.00 O $2,432.00 O $2,465.00 O $2,425.00