a. Assuming the economy is operating below its potential output, an increase in net exports willincrease aggregate expenditures, but decrease real GDP.O increase aggregate expenditures and real GDP.O decrease aggregate expenditures, but increase real GDP.decrease aggregate expenditures and real GDP.b. It is difficult, perhaps even impossible, for the United States to boost its net exports by increasing its tariffs during a global recession.This is because other countries will respond in-kind byO increasing tariffs on U.S. goods, causing U.S. exports and thus net exports to increase.decreasing tariffs on U.S. goods, causing U.S. exports and thus net exports to increase.decreasing tariffs on U.S. goods, causing U.S. exports and thus net exports to decline.O increasing tariffs on U.S. goods, causing U.S. exports and thus net exports to decline.

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a. Assuming the economy is operating below its potential output, an increase in net exports will O increase aggregate expenditures, but decrease real GDP. ***** Oincrease aggregate expenditures and real GDP. O decrease aggregate expenditures, but increase real GDP. O decrease aggregate expenditures and real GDP.

a. Assuming the economy is operating below its potential output, an increase in net exports will O increase aggregate expenditures, but decrease real GDP. ***** Oincrease aggregate expenditures and real GDP. O decrease aggregate expenditures, but increase real GDP. O decrease aggregate expenditures and real GDP.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. In macroeconomic theory, total or aggregate spending is denoted by A and total or aggregateproduction of income by Y. Which one of the following statements is incorrect? A When A is greater than Y, there is disequilibrium and Y will tend to increase.B When A is equal to Y, there is equilibrium and Y will remain unchanged.C When A is less than Y, there is disequilibrium and Y will decrease.D When A is greater than Y, there is disequilibrium and A will decrease.
Suppose the current equilibrium GDP is less than potential GDP. Which of the following actions could the government take to close the output gap? Select one or more: O a. No action is necessary O b. Decrease expenditures C. Decreases taxes Od. Increase taxes O e. Increase expenditures
a. What is the value of the MPC?b. WhatisthevalueoftheMPS?c. What is the value of the multiplier?d. What is the amount of unplanned investment at aggregate output of 300, 900, and 1,300?
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In the aggregate expenditure (AE) model, the economy is driven to its equilibrium by changes in a. government expenditures on goods and services that are the result of changes in real GDP. O b. autonomous expenditures that are the result of changes in real GDP. investment that are the result of changes in real GDP. O C. O d. induced expenditures that are the result of changes in real GDP.
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Click on the icon to read the news clip, then complete the following steps. Business inventories fall when real GDP rises because 1800- 1600- Aggregate expenditure (billions of 2002 dollars) ○ A. inventories are falling from above target to their target levels 1400- B. firms put more production time into producing consumption goods and services OC. firms put more production time into producing exports 1200- OD. both B and C are correct 1000- The graph shows the aggregate planned expenditure curve. Draw a new AE curve to show the effect of an increase in exports and business investment. Label it AE₁. 8004 800 1000 1200 1400 45 degree line G AE 1600 1800 Draw a point at the new equilibrium expenditure. Draw an arrow along the new AE curve to show the effect of the increase in real GDP on consumption expenditure. Real GDP (billions of 2002 dollars) >>> Draw only the objects specified in the question. - News clip Business Inventories Decline, GDP Rises Real gross domestic product (GDP)…