equation

  1.   
The equation above represents one of the most important variables in macroeconomics. Which of the following statements is FALSE about this equation?

 

Answer
 

   

   

   

   

   

   

   

It is equal to GDP.

It is equal to aggregate expenditure.

It is equal to consumption, investment, government purchases, and net exports for an economy.

It measures the market value of all final goods and services produced in the economy annually.

It measures economic performance.

Its components are broken down with the circular flow of income and expenditure model.

It is equal to disposable income times net taxes.

   

The equation above represents one of the most important variables in
macroeconomics. Which of the following statements is FALSE about this
equation?

Answer

It is equal to GDP.

It is equal to aggregate expenditure.

It is equal to consumption, investment, government purchases, and net exports for an

economy.

It measures the market value of all final goods and services produced in the

economy annually.

It measures economic performance.

Its components are broken down with the circular flow of income and expenditure

model.

It is equal to disposable income times net taxes.