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 total income paid by firms
Correct Answer:
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Q12: Why is GDP computed using market prices
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Q14: Which of the following is the correct
Q15: What is the goal of macroeconomics?
A)to explain
Q16: Which of the following topics are studied
Q18: If Robert works as a lawyer, how
Q19: According to the simple circular-flow model, which
Q20: What do macroeconomists study?
A)decisions of households and
Q21: If Susan decides to change the oil
Q22: Which of the following is NOT included
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