contestada

Which of the following statements is not correct for equilibrium in a three sector
economy?
Select one:
a. In a three sector economy, equilibrium consists of household, firms and the
government
b. In a three sector equilibrium, savings and taxes are leakage.
c. Aggregate demand consists a consumption, investment and government
a
expenditure.
d. Aggregate supply consists of consumption, savings and taxes.

Respuesta :

Answer:

b is the answer

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The statement that is not correct is that in a three-sector equilibrium, savings and taxes are leakage.

What is equilibrium in a three-sector economy?

Corresponds to national income equilibrium when aggregate supply equals aggregate demand, as measured by the sum of consumption, investment and government spending.

Therefore, alternative b is incorrect, since equilibrium is determined by the law of supply and demand.

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