In the figure above, if real GDP is $6 trillion, aggregate planned expenditure is
A) less than $6 trillion and unplanned inventory changes are positive.
B) equal to $6 trillion and unplanned inventory changes are positive.
C) equal to $6 trillion and there are no unplanned inventory changes.
D) more than $6 trillion and unplanned inventory changes are negative.
E) equal to $6 trillion and unplanned inventory changes are negative.
Correct Answer:
Verified
Q22: When aggregate planned expenditure exceeds real GDP,
Q23: When aggregate planned expenditure is less than
Q24: According to the aggregate expenditure model, when
Q25: When real GDP exceeds aggregate planned expenditure
A)an
Q26: When disposable income increases, consumption expenditure
A)also increases,
Q28: The MPC is 0.90 and there are
Q29: An increase in the marginal tax rate
A)can
Q30: As a household's disposable income increases, its
Q31: The expenditure multiplier is larger than one
Q32: When the AE curve shifts upward because
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