Investment spending in a closed economy must equal GDP minus consumption minus government spending.

Name: Investment spending in a closed economy must equal GDP minus consumption minus government spending.
Brand: Quizplus
Rating: 4.8 (55 reviews)

Question

Quizplus · Accepted Answer

In a closed economy, investment spending is equal to GDP minus consumption minus government spending because the total output (GDP) is either consumed, invested, or spent by the government, without any exports or imports to consider.

Investment Spending in a Closed Economy Must Equal GDP Minus