Question 42Aggregate demand is aboutincome, spendingproduction; spendingproduction; incomesaving: profitspending: productionQuestion 43and aggregate supply is aboutThe four major expenditure categories of gross domestic product (GDP) areconsumption, government purchases, taxes, and investment.consumption, investment, government purchases, and stocks.consumption, investment, government purchases, and net exports,consumption, investment, taxes, and net exports.consumption, imports, exports, and government purchases.

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Question 42 Aggregate demand is about income: spending production; spending production; income saving: profit and aggregate supply is about

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 5.11P

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GDP $0 1 2 Consumption $0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 D 8 4.5 As shown in Exhibit 9-1, if equilibrium GDP is $5 trillion, then the total of investment, government spending, and net exports is: 8 4.5 As shown in Exhibit 9-1, if equilibrium GDP is $5 trillion, then the total of investme O $1 trillion. $2 trillion. O $3 trillion. O $4 trillion. $6 trillion. 4 Aggregate Expenditures 6 Unplanned inventory