Match each definition to the appropriate component of aggregate demand.DefinitionThe sum of the expenditures of business firms on new plant,equipment, and software and of households on new homesThe goods and services purchased by all levels of governmentThe total amount spent by consumers on newly produced goodsand servicesThe difference between exports and importsⒸNet exportsO Government spendingConsumerExpenditureWhich of the following components represents the largest piece of aggregate demand?O Consumer expenditureO Investment spendingOWhich of the following components represents the smallest piece of aggregate demand?O Consumer expenditureO Government spendingO Investment spendingONet exportsInvestmentSpendingGovernmentSpendingNetExportsOOOO

Aggregate demand shows the total quantity of final goods and services demanded at each price level.…

Match each definition to the appropriate component of aggregate demand. Definition The sum of the expenditures of business firms on new plant, equipment, and software and of households on new homes The goods and services purchased by all levels of government The total amount spent by consumers on newly produced goods and services The difference between exports and imports Consumer Expenditure largest piece of aggregate demand? Investment Spending Government Spending O Net Exports O O O O

Match each definition to the appropriate component of aggregate demand. Definition The sum of the expenditures of business firms on new plant, equipment, and software and of households on new homes The goods and services purchased by all levels of government The total amount spent by consumers on newly produced goods and services The difference between exports and imports Consumer Expenditure largest piece of aggregate demand? Investment Spending Government Spending O Net Exports O O O O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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18. If consumers in the U.S. buy $3.5 billion of clothes made by businesses in Bangladesh, how is this accounted for in the expenditure categories? a. this is spending on a consumer good so GDP rises b. the clothes are imports so they reduce GDP c. the clothes are both consumer goods and imports so GDP doesn't change d. the GDP could rise or fall, it depends on whether the clothes were taxed
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