Question

What do \[Y\] and \[T\] represent in \[Y_d=Y-T\]?

Options

• Actual Investment and inventories, respectively

• Planned output and Total Autonomous Expenditure, respectively

• National Income and Taxes, respectively

• Disposable Income and Government Expenditure, respectively

Answer 1

In \[Y_d=Y-T\], \[Y\] represents National Income and \[T\] represents Taxes. Subtracting Taxes gives Disposable Income.