Author Question: In an economy without a government and without international transactions, aggregate expenditure at ... (Read 16 times)

debasdf · **on:** Jun 30, 2018

In an economy without a government and without international transactions, aggregate expenditure at each level of income is equal to:
a. consumption plus saving.
b. planned investment plus saving.
c. disposable income plus the price level.
d. consumption plus planned investment.
e. planned investment minus saving.

Question 2

Suppose a firm wants to build a new factory that would add pollution to an already polluted area. Under an offset program, the firm must:
a. install scrubbers and other government-mandated equipment.
b. purchase pollution permits from the government.
c. reduce or eliminate an old pollution source in the area.
d. pay a tax which depends on the amount of pollution created.