Use the figure below to answer the following questions.
Figure 27.2.1
There are no exports or imports in this economy.
-Refer to Figure 27.2.1. When real GDP is equal to Yb, then aggregate planned expenditure is
A) less than real GDP, and real GDP decreases.
B) less than real GDP, and real GDP increases.
C) greater than real GDP, and real GDP increases.
D) greater than real GDP, and real GDP decreases.
E) equal to real GDP, and real GDP neither increases nor decreases.
Correct Answer:
Verified
Q75: Suppose real GDP increases by $1 billion
Q76: If AE = 50 + 0.6Y and
Q77: Everything else remaining the same, autonomous consumption
A)increases
Q78: A change in consumption, in response to
Q79: As real GDP increases,
A)autonomous consumption increases.
B)planned investment
Q81: Use the figure below to answer the
Q82: Everything else remaining the same, an increase
Q83: As real GDP decreases,
A)induced consumption decreases.
B)planned investment
Q84: If aggregate planned expenditure exceeds real GDP
Q85: Table 27.2.1
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