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- Problem 1 The various expenditure categories within the economy are: C = 600+ 0.8Yd | = 800 G = 600 NX = 0 T= 700 Refer to problem 1. Equilibrium Real GDP is O 7200 O 4200 O 1800 O 5500Which of the following policies will NOT shift the Aggregate Expenditure curve upward? Select one: O a. increasing autonomous taxes O b. decreasing autonomous taxes O c. increasing autonomous transfer payments O d. increasing government expenditures on goods and servicesWhen there's an increase in the cost of electricity for operating firms machines: O a. The investment demand curve will shift to the right O b. The consumption schedule will shift downward O c. The saving schedule will shift downward O d. The investment demand curve will shift to the left
- Problem 1 Given the following data for a closed economy I= 3400 Planned Investment G=4000 Government Spending C= 3,800 + 0.8 Yd Consumption function T= 1000 TaxesWhen planned aggregate expenditure is less than real GDP, as in the diagram to the right, what happens to firms' inventories? OA. Inventories fall as firms increase output. O B. Inventories accumulate as firms increase production. O C. Inventories fall if production is not scaled back. O D. Inventories accumulate if production is not scaled back. Real Aggregate Expenditure, AE ($100 billions) 100- 90- 80- 60- 50- 40- 30- 20- 10- 'Y = AE 45° 10 20 30 40 50 60 70 80 90 100 Real GDP, Y ($100 billions)During 2019, a country reported that its real GDP increased by $3.0 billion. If the slope of its aggregate planned expenditure curve is 0.9, then which of the following might have led to the increase in real GDP? O a. Investment decreased by $0.3 billion. on O b. Exports increased by $0.3 billion. O c. Exports decreased by $0.3 billion. O d. Imports increased by $0.3 billion. O e. Government expenditure on goods and services increased by $3 billion.
- China's Economy Just Shrank for the First Time in Decades. It Could Still Eke Out Growth This Year China's real GDP decreased 6.8 percent in the first quarter of 2020. Investment decreased by 16 percent and consumer spending by 12.5 percent. Exports decreased 13 percent. Explain how gavemment expenditure minus imports changed in the first quarter of 2020. Government expenditure minus imports O A. decreased by more than 6.8 percent O B. must have increased OC. must have remained constant O D. decreased by less than 6.8 percent or increasedWhich is not a Final Use Component of the Use Table: O a. Household final consumption expenditure O b. Government final consumption expenditure. O c. Depreciation O d. NPISHs final consumption expenditure. An identity of the Supply and Use Table is: Total Output > Total Input O b. Total Supply > Total Use O c. Total Supply < Total Use O d. Total Output = Total Input a.The difference between planned and unplanned spending is Select one: O a. always negative O b. unplanned changes in inventories O c inventories O d. always positive
- During the recession of 2007-2009 in the United States, relative to potential GDP. Select one: O a. net export spending rose and consumption spending declined Ob. business fixed investment spending rose and net export spending declined O c. consumption spending rose and residential construction spending declined O d. federal government purchases rose and changes in business inventories declinedIf your grandparents buy a newly built retirement home, this transaction would affect Select one: O a. disposable income. O b. investment. O c. government purchases. O d. consumption. O e. net exports.QUESTION 19 Transfer payments are O a. excluded when calculating GDP because they only reflect inflation. O b. excluded when calculating GDP because they do not reflect current production. O c. included when calculating GDP because they are a category of investment spending. O d. included when calculating GDP because they increase the spending of recipients.