Choose the best statement.
A) An increase in compensation of employees increases aggregate income but does not change GDP.
B) GDP equals aggregate expenditure and equals aggregate income.
C) An increase in government purchases increases aggregate expenditure but does not change GDP.
D) GDP always equals aggregate expenditure and sometimes equals aggregate income.
Correct Answer:
Verified
Q41: Q54: Gross investment equals net investment plus Q57: Suppose Mail Boxes Etc. buys a new Q57: The circular flow shows that Q58: According to the circular flow diagram, the Q60: Gross domestic product GDP) is Q61: The largest component of GDP in the Q62: GDP can be computed as the sum Q63: Net investment equals Q64: The four categories of expenditure used by
A) dividends
A) aggregate production
A) the sum
A) gross investment + depreciation.
B)
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