ECO 104 Final Exam Questions (3 Pages 1328 Words)

Please provide diagrams where necessary. The quality of your explanation is the utmost important. Each of the question has 10 points. 1. Aggregate Income is equal to Aggregate Expenditure. True/False True. Every national transaction will affect income and expenditure of one country. Besides, Aggregate Expenditure is a measure of national income so if the expenditure and the income is not balance. There must be something wrong of it. Here is why Aggregate Income is Equal to Aggregate Expenditure: AE C I G Xn AE Aggregate Expenditure C Consumption I Investment G Government Expenditure Xn Net Exports (Exports-Imports)

1. The purchase of used cars will not be counted as GDP. True/False True. When someone...