The circular flow of income assumes that
A) the national income accounting approach is not an adequate way to measure the economy's performance.
B) profit is not a cost of production.
C) goods and services flow in one direction and money payments flow in the other.
D) total income is the sum of the value of intermediate goods and final goods and services.
C
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Let C = 70 + 0.75y and I = 40. Assume no government or foreign sectors. Investment needs to increase by ________ to increase equilibrium output by a total of $600
A) $30 B) $150 C) $560 D) $600
If no foreign companies produce in a country, but many of the country's companies build products in foreign countries, then it is safe to say that _____.
(A) The country's GDP and GNP are equal. (B) The country's GDP is greater than its GNP. (C) The country's GDP is equal to its national income. (D) The country's GNP is greater than its GDP.