2. Shifts in aggregate demand
Which of the following formulas best defines GDP using the expenditure method?
a- AD=I+G+(X−M)
b- AD=C−I−G+(X−M)
c- AD=C+I+G+(X−M)A
d- AD=C+I+G+X
Homework Answers
a) "D"
AD=C+I+G+X this formula represents GDP in expenditure method.
b)
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2. Shifts in aggregate demand
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