The income approach measures GDP by summing
A) the wealth of households, business and government.
B) the incomes paid households for the resources they own.
C) the total production of all final goods and services produced in a year within a country's borders.
D) C + I + G + NX.
E) Both answers A and D are correct.
B
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In the Keynesian framework, as long as output is below the equilibrium level, unplanned inventory investment will remain ________ and firms will continue to ________ production
A) negative; lower B) negative; raise C) positive; lower D) positive; raise
Refer to Figure 9.1. Suppose the market is currently in equilibrium. If the government establishes a price ceiling of $20, consumer surplus will
A) fall by $200. B) fall by $300. C) remain the same. D) rise by $200. E) rise by $300.