Which of the following is true about the components of GDP?   When we buy stocks, this is economic investment. Net exports must always be a negative number. Government purchases make up the largest part of GDP. A refrigerator is a durable consumption good.

Q: Suppose that business executives are very optimistic, and they raise their investment spending. What…

A: Keynesianism, due to its potential to ease economic downturns through government involvement, gained…

Q: Explain why investment (I) varies more from year-to-year than consumption (C).

A: Lets understand the factors on which the investment depends: 1. Marginal efficiency of capital: It…

Q: If Government Spending (G) is $200 million, Tax Revenue (T) is $260 million, Consumption is $ 300…

A: GDP by the expenditure approach is the sum total of all the expenditures by all the sector in the…

Q: If consumption is $15 trillion, investment spending $8 trillion, government purchases $7 trillion,…

A: C or Consumption expenditure is the expenditure incurred on the consumption by households.G or…

Q: An increase in the interest rate should increase investment spending. decrease consumption spending.…

A: Aggregate demand is the sum of Consumption spending, investment spending, government spending and…

Q: An economy is described by the following equations: C= 2,000 + 0.75 (Y – T) Ip= 900 G= 2,000 NX=…

A: Autonomous Expenditure is summation of spending by the all sectors. i.e.  Autonomous Expenditure = C…

Q: Consider the circular flow of expenditure and income in the Canadian economy. Which of the following…

A: The circular flow of income and expenditure basically refers to the mechanism through which an…

Q: Which of the following components of aggregate expenditure is most subject to crowding out? O a.…

A:

Q: If national income (output) is $8.5 Trillion, Consumption is $6 Trillion, Exports are $1 Trillion,…

A: National Income or output is "the market value of all the goods and services produced within the…

Q: Suppose real GDP is $5,361 billion, taxes collected by the government are $528 billion, government…

A: Formula:

Q: If households spend $80 billion on goods and $70 billion on services, how much in revenues do…

A: There are two types of market: Product market and Money market. The product market is also called…

Q: Which of the following statements is true? Business investment includes purchases of…

A: The term "business investment" refers to the expenditure of resources by a company or an individual…

Q: Use the following information to calculate the level of consumption expenditure in this closed…

A: let's we have given variableReal GDP = $1000Taxes = $150 Government Spending = $200Private…

Q: Explain why an economy’s output, in essence, is also its income.

A: ANS In an economy, all the goods that are produced are sold. Also, it should be noted that whatever…

Q: If consumption expenditure is $30 billion, investment spending is $15 billion, government spending…

A: Consumption = $30 billion Investment = $15 billion Government spending = $12 billion Exports = $4…

Q: Assume an economy has a consumption function of C = 0.87 (Yd) + $270.18. Additionally, this economy…

A: The economy is in equilibrium when real GDP (Y) is equal to aggregate expenditure, whereAggregate…

Q: Consider each of the following items. Should it be counted as part of U.S. GDP? If so, in which…

A: GIVEN   Consider each of the following items. Should it be counted as part of U.S. GDP

Q: The consumption expenditure and output of the country is 500 billion and 100 billion respectively.…

A: Given the consumption (C) = 500 billion National income (Y) = 100 billion

Q: he following are the components of aggregate demand EXCEPT,   A) government spending. B)…

A: The Answer is given below

Q: The following table shows data on personal consumption expenditures, gross private domestic…

A: GDP (Gross Domestic Product) refers to the sum of all the final value of gods and services produced…

Q: How does an increase in government spending affect the aggregate expenditure line? It shifts the…

A: Government spending includes all of the things the government buys and all of the many things it…

Q: For each form of private spending, indicate whether it represents consumption or investment. Private…

A: Consumption reflects the total expenditure made on the goods and services consumed in an economy.…

Q: Explain some reasons why consumption spending and gross private domestic investment spending are so…

A: GDP (Gross Domestic Product): It refers to the total of market value of all produced final goods and…