1. The equation above represents one of the most important variables in macroeconomics. Which of the following statements is FALSE about this equation?
Answer
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It is equal to GDP.
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It is equal to aggregate expenditure.
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It is equal to consumption, investment, government purchases, and net exports for an economy.
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It measures the market value of all final goods and services produced in the economy annually.
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It measures economic performance.
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Its components are broken down with the circular flow of income and expenditure model.
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It is equal to disposable income times net taxes.
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