Consumption is $5 million,planned investment spending is $8 million,government purchases are $10 million,and net exports are equal to $2 million.If GDP during that same time period is equal to $27 million,what unplanned changes in inventories occurred?
A) There was an unplanned increase in inventories equal to $2 million.
B) There was no unplanned change in inventories.
C) There was an unplanned decrease in inventories equal to $2 million.
D) There was an unplanned decrease in inventories equal to $19 million.
Correct Answer:
Verified
Q7: Household spending on goods and services is
Q8: The aggregate expenditure model focuses on the
Q9: When aggregate expenditure = GDP
A)macroeconomic equilibrium occurs.
B)the
Q10: Consumption spending is $16 million,planned investment spending
Q11: The key idea of the aggregate expenditure
Q13: Actual investment spending does not include
A)spending on
Q14: Inventories refer to
A)goods which have been presold
Q15: At macroeconomic equilibrium
A)total investment equals total inventories.
B)total
Q16: Each of the following is one of
Q17: Consumption spending is $5 million,planned investment spending
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