Assume a model with no government or foreign sector.If actual output is $13.1 trillion while aggregate demand is $13.2 trillion, we know that
A) the magnitude of unintended inventory adjustments is - $100 billion
B) the magnitude of unintended inventory adjustments is + $100 billion
C) the magnitude of unintended inventory adjustments is + $10 billion
D) the actual income level is above its equilibrium
E) there currently is an excess supply of goods and services
Correct Answer:
Verified
Q11: Assume a simple model without any government.If
Q12: A consumption function of the form C
Q13: In a simple model with no government
Q14: Assume a model with no government or
Q15: In a Keynesian model of income determination,
Q17: Total autonomous spending
A)is dependent on the level
Q18: Assume a simple model of the expenditure
Q19: In a model with no government or
Q20: If autonomous investment increases by 100 and
Q21: Assume a model with an income tax
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