In an economy consisting of only households and firms, how can GDP be computed?
A) by calculating the average total expenditures of households and subtracting savings
B) by calculating the average 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:
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Q10: Which market is the model of supply
Q11: Which question is more likely to be
Q12: Why is GDP computed using market prices
Q13: Which headline would be most closely related
Q14: Which statistic is the best single measure
Q16: Which of the following is a macroeconomic
Q17: Which topics are studied in macroeconomics?
A) unemployment,
Q18: If GDP rises, what happens?
A) Income and
Q19: What is the relationship between income and
Q20: How should Dianne's contributions to GDP be
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