Savings:
What will be an ideal response?
The accumulation of funds that results when people in an economy spend less that their income
You might also like to view...
In the long run, an entrepreneur who owns a perfectly competitive firm will earn no income from that firm
a. True b. False
Answer the following questions true (T) or false (F)
1. If Gladys sells her 2003 Jeep Cherokee for $3,500 in 2018, the sale of her car contributes $3,500 to 2018 GDP. 2. The circular flow of income shows that GDP can be measured as the sum of wages, interest, rent, and profits received by households or total expenditures on goods and services by households, firms, government, and the rest of the world. 3. Government spending on transfer payments is included in government purchases when calculating GDP because it results in the production of new goods and services.