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8. Comparing total expenditures and total production The following graph shows total production (TP) and total expenditures (TE) for a hypothetical economy. Suppose Real GDP is $425 billion. TOTAL EXPENDITURE (Billions of dollars) 600 575 550 525 475 450 425 400 400 425 450 475 500 525 550 575 600 REAL GDP (Billions of dollars) (TP = Real GDP) TE If Real GDP is $425 billion, inventories decrease, do not change, or increase the firms cut back, do not change, or raise production, and Real GDP decrease to $400, does not change, increases to $475, or increases to $600

8. Comparing total expenditures and total production The following graph shows total production (TP) and total expenditures (TE) for a hypothetical economy. Suppose Real GDP is $425 billion. TOTAL EXPENDITURE (Billions of dollars) 600 575 550 525 475 450 425 400 400 425 450 475 500 525 550 575 600 REAL GDP (Billions of dollars) (TP = Real GDP) TE If Real GDP is $425 billion, inventories decrease, do not change, or increase the firms cut back, do not change, or raise production, and Real GDP decrease to $400, does not change, increases to $475, or increases to $600

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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TOPIC: Comparing total expenditures and total production
8. Comparing total expenditures and total production The following graph shows total production (TP) and total expenditures (TE) for a hypothetical economy. Suppose Real GDP is $425 billion. TOTAL EXPENDITURE (Billions of dollars) 600 575 550 525 475 450 425 400 400 425 450 475 500 525 550 575 600 REAL GDP (Billions of dollars) (TP = Real GDP) TE If Real GDP is $425 billion, inventories decrease, do not change, or increase the firms cut back, do not change, or raise production, and Real GDP decrease to $400, does not change, increases to $475, or increases to $600
Transcribed Image Text:8. Comparing total expenditures and total production The following graph shows total production (TP) and total expenditures (TE) for a hypothetical economy. Suppose Real GDP is $425 billion. TOTAL EXPENDITURE (Billions of dollars) 600 575 550 525 475 450 425 400 400 425 450 475 500 525 550 575 600 REAL GDP (Billions of dollars) (TP = Real GDP) TE If Real GDP is $425 billion, inventories decrease, do not change, or increase the firms cut back, do not change, or raise production, and Real GDP decrease to $400, does not change, increases to $475, or increases to $600
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