Consumption spending is $5 million, planned investment spending is $8 million, actual investment spending is $8 million, government purchases are $10 million, and net export spending is $2 million
Based on this information, which of the following is true?
A) Aggregate expenditure is greater than GDP. B) Aggregate expenditure is equal to GDP.
C) There was an unplanned change in inventories. D) Aggregate expenditure is less than GDP.
B
Economics
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Refer to Figure 13-1. Ceteris paribus, a decrease in government spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
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Robert Lucas, a Nobel laureate in economics, argues that there are increasing returns to
A) knowledge capital. B) human capital. C) physical capital. D) financial capital.
Economics