In a closed economy in which no international economic activity occurs, which of the following is NOT true?
A) Production in the nation must equal total demand (spending on final goods and services) .
B) Total spending is equal to the sum of consumer spending, business investment, and government purchases.
C) Value added in the economy is equal to income paid to factors of production.
D) Value added in the economy is equal to the sum of consumer spending, business investment, and government purchases.
Correct Answer:
Verified
Q5: Gross national expenditure in a closed economy
Q6: Income paid to factors is called:
A) national
Q7: Net factor income from abroad is defined
Q8: When calculating GDP in an open economy,
Q9: In a closed economy, income generated from
Q11: In an open economy, GNI is equal
Q12: Summaries of international flows of goods and
Q13: Which of the following factors is NOT
Q14: Government consumption expenditure includes the following, EXCEPT
Q15: In the flow diagram representing an open
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents