Page 50 - Macroeconomics. book docx_Neat

• D. Savings

4. Aggregate spending is equal to:

• A. C + I + G + (X − M)
• B. C + S

• C. GDP − G

• D. I + G

5. Consumption is usually:

• A. The largest component of aggregate spending

• B. The smallest component

• C. Equal to investment
• D. Greater than government spending only

6. Gross investment includes:

• A. Depreciation only
• B. Net investment plus depreciation

• C. Net investment only

• D. Inventory only

7. Inventory investment refers to changes in:

• A. Household income

• B. Government expenditure

• C. Stocks of goods

• D. Exports

8. Net exports are calculated as:

• A. X + M
• B. M − X

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