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Aggregate demand (AD) is the sum of consumption, investment,government spending

ID: 1239400 • Letter: A

Question

Aggregate demand (AD) is the sum of consumption, investment,government spending and

Marginal benefit is the increment to total benefitderived from consuming an additional unit of

good or service.

1.     T

2.     F

Gross domestic product is a measureof:

1.     The total market value of all finalgoods and services produced in one year.

2.     The price level of goods and servicessold in one year.

Marks : 1

3.     The total amount of refrigerators,washing machines and other household appliances

produced in one year.

4.     The total amount of goods andservices produced by private companies in one year.

Explanation / Answer

Aggregate demand (AD) is the sum of consumption, investment,government spending and NetExport.

Marginal benefit is the increment to total benefitderived from consuming an additional unit of

good or service. T

1.     The total marketvalue of all final goods and services produced in oneyear.