PotentialGDPAggregateexpenditureAE,E,45°Y.Real GDP (Y)When real GDP is greater than Yo in the diagram above:O A.inventories will decreaseOB.O B: Aggregate expenditure will be less than Real GDPOC.Aggregate expenditure will be equal to Real GDPOD.-inventories will increaseAggregate Expenditure

Equilibrium in the economy occurs at the intersection point of AE (i.e., aggregate expenditure) and…

Answered: GDP Aggregate expenditure AE, E, 45° Y.…

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GDP Aggregate expenditure AE, E, 45° Y. Real GDP (Y) Aggregate Expenditure

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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QUESTION 6 Potential GDP Aggregate expenditure AE, 45° Y. Real GDP (Y) When real GDP is greater than Yo in the diagram above: O A. - inventories will decrease OB. ·Aggregate expenditure will be less than Real GDP OC. Aggregate expenditure will be equal to Real GDP OD. O D. inventories will increase QUESTION 7 Y G Xn $1,000 $1,400 1,400 1,400 1,400 1,400 $0 $800 -$200 2,500 5,000 7,500 10,000 2,300 3,800 5,300 6,800 1,000 1,000 1,000 1,000 -200 -200 -200 -200 Suppose you are given the data in the table above for a hypothetical economy. All data are in billions of dollars. Yis actual real GDP, and C, Ip, G, and Xn are the consumption, planned investment, government purchases, and net exports components of aggregate expenditures, respectively. Calculate the equilibrium GDP (give your answer in billions of $) Aggregate Expenditure
which seems to be correct?
Which one of the following statements about consumption spending is incorrect? A. Spending on non-durable goods such as food is the most stable component of consumption spending. B. Spending on durable goods is the most erratic or volatile component of consumption spending. O C. Consumption spending is determined largely by total income in the economy. O D. Part of consumption spending consists of spending on services. E. There is a strong inverse relationship between consumption spending and total income in the economy
If output is less than planned aggregate expenditure, there will be Lütfen birini seçin: O A. an unplanned increase in inventories O B. a planned decrease in inventories. O C. no change in inventories O D. a planned increase in inventories O E. an unplanned decrease in inventories
A country reports that unplanned inventories increased during 2019. The increase in unplanned inventories leads to O a. the government decreasing production, which decreases GDP. O b. consumers increasing their consumption expenditure, which increases GDP. firms decreasing production, which decreases GDP. O d. actual aggregate expenditure being different than real GDP. e. firms increasing production, which increases GDP.
Aggregate planned expenditure (trillions of 2009 dollars) 45° line 20 AE 15 f 10 8 25 5 O O $5 trillion. 5 In the above figure, autonomous expenditure is O $10 trillion. 10 15 20 25 30 Real GDP (trillions of 2009 dollars) O $15 trillion. some amount not given in these answers.
Unemployment insurance is: O A government program that provides cash benefits to eligible workers who have lost their jobs. O A government program that allows people to not pay income taxes when they lose their jobs. O A program run by private insurance companies that provides cash benefits to workers who have purchased unemployment insurance. A government program that offers temporary employment to eligible workers who have lost their jobs. When more people qualify for unemployment insurance, which components of planned aggregate expenditure are affected? O Consumption Consumption and investment O Government spending O Consumption and government spending Unemployment insurance helps reduce the severity of recessions. (Click to select) ♥ (Click to select) True False
When 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)
In the figure, equilibrium expenditure is equal to Aggregate planned expenditure (trillions of 2012 dollars 30 O A. $15 trillion. 25- O B. $5 trillion. 45-degree line O C. $10 trillion. 20- O D. $20 trillion. AE O E. None of the above answers are correct. 15- 10- 5- 0- 5 10 15 20 25 Real GDP (trillions of 2012 dollars)
Question 2 Figure 23-1 L W L N M B Refer to Figure 23-1. Which of the following pairs correctly identify W and Y? a. Markets for factors of production and markets for goods and services O b. Firms and households O c. Expenditures and income O d. Consumption and investment +
am. 123.
billions of dollars Personal consumption expenditures 500 Gross private domestic investment 400 Social Security payments to households 60 Federal government purchases of goods and services 100 State and local government purchases of goods 200 Imports 180 Net exports |-50