In an economy consisting of only households and firms,how can GDP be computed?
A) by adding up the total expenditures of households and subtracting savings
B) by adding up the income paid by firms only in exchange for labour
C) by adding up either total income paid by firms or total expenditures of households, but not both
D) by adding up both the total expenditures of households and the total income paid by firms
Correct Answer:
Verified
Q2: What does the simple circular-flow diagram illustrate?
A)that
Q6: Which of the following questions is more
Q7: In a simple circular-flow diagram, how are
Q8: What is the goal of macroeconomics?
A) to
Q9: Why does expenditure equal income?
A) because firms
Q9: How is GDP computed?
A)Add up the quantities
Q12: Which of the following headlines would be
Q13: In a simple circular-flow diagram,why is total
Q18: If GDP rises, what happens?
A) Income and
Q19: According to the simple circular-flow model, which
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