A country reports that when real GDP is $13.0 trillion, aggregate planned expenditure is $14.0 trillion. When real GDP equals $13.0 trillion,
A) planned inventory changes by -$1.0 trillion.
B) planned inventory changes by $1.0 trillion.
C) unplanned inventory changes by -$1.0 trillion.
D) both planned and unplanned inventory changes are -$1.0 trillion.
E) unplanned inventory changes by $1.0 trillion.
Correct Answer:
Verified
Q56: When investment increases, the multiplier points out
Q57: Q58: Jack Nelson, a supervisor in the hardware Q59: For each one dollar increase in real Q60: When disposable income is $8 trillion, consumption Q62: The expenditure multiplier explains how a change Q63: The marginal propensity to import is larger Q64: As disposable income--------------------, planned consumption expenditure-------------------- by Q65: If firms' inventories exceed their planned inventories, Q66: If aggregate planned expenditure exceeds real GDP,
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents