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In a Closed Economy in Which No International Economic Activity

Question 10

Multiple Choice

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.

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