Fill in blanks based on the table 1. First blank pick from these choices- A. The economy is in equilibrium B. Firms would have a $50 billion reduction in inventories C. Firms would have excess inventories of $50 billion D. Agreggate expidenture must also equal $900 billion 2. Second blank pick from these choices- A. Decrease production B. Keep production the same C. Increase production
Fill in blanks based on the table 1. First blank pick from these choices- A. The economy is in equilibrium B. Firms would have a $50 billion reduction in inventories C. Firms would have excess inventories of $50 billion D. Agreggate expidenture must also equal $900 billion 2. Second blank pick from these choices- A. Decrease production B. Keep production the same C. Increase production
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter15: Measuring A Nation's Income
Section: Chapter Questions
Problem 4CQQ
Related questions
Question
Fill in blanks based on the table
1. First blank pick from these choices-
A. The economy is in equilibrium
B. Firms would have a $50 billion reduction in inventories
C. Firms would have excess inventories of $50 billion
D. Agreggate expidenture must also equal $900 billion
2. Second blank pick from these choices-
A. Decrease production
B. Keep production the same
C. Increase production
![6. Aggregate expenditure and income
Suppose the following table shows consumption (C), investment (I), government purchases (G), and net exports (NX) in a hypothetical economy
for various levels of real GDP. Assume that the price level remains unchanged at all levels of real GDP.
Real GDP
I
G
NX
(Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars)
500
250
250
200
-150
600
325
250
200
-150
700
400
250
200
-150
800
475
250
200
-150
900
550
250
200
-150](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F312d8763-4e5f-430b-b9b4-0d2c69ac117c%2F9771b90c-9c9c-4c4e-ab9d-113c48711877%2F0irrkxi_processed.png&w=3840&q=75)
Transcribed Image Text:6. Aggregate expenditure and income
Suppose the following table shows consumption (C), investment (I), government purchases (G), and net exports (NX) in a hypothetical economy
for various levels of real GDP. Assume that the price level remains unchanged at all levels of real GDP.
Real GDP
I
G
NX
(Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars)
500
250
250
200
-150
600
325
250
200
-150
700
400
250
200
-150
800
475
250
200
-150
900
550
250
200
-150
![Suppose real GDP is currently $900 billion. Assuming that the price level remains constant, this would mean that
which would send a signal to firms to](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F312d8763-4e5f-430b-b9b4-0d2c69ac117c%2F9771b90c-9c9c-4c4e-ab9d-113c48711877%2Fevs5yn_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose real GDP is currently $900 billion. Assuming that the price level remains constant, this would mean that
which would send a signal to firms to
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Essentials of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337091992/9781337091992_smallCoverImage.gif)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Brief Principles of Macroeconomics (MindTap Cours…](https://www.bartleby.com/isbn_cover_images/9781337091985/9781337091985_smallCoverImage.gif)
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![ECON MACRO](https://www.bartleby.com/isbn_cover_images/9781337000529/9781337000529_smallCoverImage.gif)
![Essentials of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337091992/9781337091992_smallCoverImage.gif)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Brief Principles of Macroeconomics (MindTap Cours…](https://www.bartleby.com/isbn_cover_images/9781337091985/9781337091985_smallCoverImage.gif)
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![ECON MACRO](https://www.bartleby.com/isbn_cover_images/9781337000529/9781337000529_smallCoverImage.gif)
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax