Scenario: In a closed economy without a government, the consumption expenditure equals $5,000 and the investment expenditure equals $2,000.
-Refer to the scenario above.What is the national income of the economy?

Question

Quizplus · Accepted Answer

In a closed economy without a government, the national income is equal to the sum of consumption expenditure and investment expenditure. Therefore, the national income of the economy is $5,000 + $2,000 = $7,000.

Scenario: in a Closed Economy Without a Government, the Consumption