Why is it true that domestic product and national income must be equal?
a. The IRS national accounting system assures that taxes equal total income.
b. The total amount of spending must equal total national sales.
c. The value of final product must equal the sum of resource income that produced it.
d. The total amount of income earned is eventually spent.
c
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In the figure above, the shift in the aggregate demand curve from AD1 to AD3 could be the result of
A) a decrease in the real interest rate. B) a decrease in the buying power of money. C) an increased expectation of a recession that lowers the expected rate of profit from investment. D) a decrease in the foreign exchange rate. E) an increase in the price level.
In a market economy, prices help determine the distribution of goods and services but not the allocation of resources
a. True b. False Indicate whether the statement is true or false