Author Question: Discuss the components of GDP using the expenditure approach.[br][br][b][color=#7BCCB5]Question ... (Read 32 times)

shofmannx20 · **on:** Jun 30, 2018

Discuss the components of GDP using the expenditure approach.

Question 2

In the aggregate demand and supply model, the:
a. aggregate supply curve is horizontal at full-employment real GDP.
b. vertical axis measures real GDP.
c. vertical axis measures the average price level.
d. All of these.
e. None of these.

Anna · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

GDP equals consumption spending plus investment spending plus government spending plus net exports; GDP = C + I + G + (X M).

Answer to Question 2

c