If unplanned inventory investment is positive, then Select one: O a. planned aggregate expenditure must be greater than aggregate output O b. None of the options c. planned aggregate expenditure must equal aggregate output O d. planned aggregate expenditure must be less than aggregate output

If unplanned inventory investment is positive, then Select one: O a. planned aggregate expenditure must be greater than aggregate output O b. None of the options c. planned aggregate expenditure must equal aggregate output O d. planned aggregate expenditure must be less than aggregate output

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

See similar textbooks

Related questions

Q: Unemployment insurance is: O A government program that provides cash benefits to eligible workers…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: Refer to the information provided in Table 8.9 .below to answer the questions that follow Table 8.9…

A: We know that unplanned inventory is the difference between the inventory that is needed and the…

Q: Aggregate planned expenditure decreases if O a. investment increases. O b. real GDP decreases. O c.…

A: Aggregate planned expenditure is computed as:

Q: Which one of the following statements about consumption spending is incorrect? А. Spending on…

A: Consumption Spending is one of the most important component of Gross Domestic Product. Consumption…

Q: Which of the following doesn't have increasing function? O a. Saving function O b. Consumption…

A: In economics, a function is said to be increasing when the value of independent variable increases,…

Q: In the economy of Talikastan in 2015, exports were $200, GDP was $2000, government purchases were…

A: To find out the winter consumption of chestnuts in , you can use the cost method to calculate GDP:…

Q: Question 4 Assume the economy's consumption and saving schedules simuitaneously shift downward. This…

A: Consumption refers to the use of commodities and services by the consumers. Savings is the amount of…

Q: a.) How will COVID impact China’s GDP and consumption? b.) How did COVID affect manufacturing…

A: Consumption is the method in which people buy and use goods and services for themselves.

Q: Question No: 02 [Marks: 10] If the State Bank started printing large quantities of Pakistani Rupees…

A: It will increase.

Q: During the recession of 2007-2009 in the United States, relative to potential GDP. Select one: O a.…

A: A recession refers to a significant decline in economic activity within a country or region. It's…

Q: In the income-expenditure model, if autonomous investment decreases by $10 billion, a. planned…

A: The relationship between income and expenditure in an economy is depicted by the income expenditure…

Q: Aggregate Expenditure (dollars) 1,000 800 700 600 400 200 0 ΔΑΕ 45° OB. 600-700 billion dollars. Oc…

A: Aggregate expenditure is the sum of consumption, investment, government expenditure, and net…

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

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

Q: If a $5,000 increase in income leads to additional savings of $1,250, the marginal propensity to…

A: Marginal propensity to save refers to the ratio of change in saving to change in income :-

Q: Which of the following increases as a result of an increase in real GDP? i. autonomous expenditure…

A: Answer is given below

Q: The circular flow shows that Select one: O A. GDP equals aggregate income. O B. aggregate…

A: Circular flow: The circular flow explains the process that determines the national income and…

Q: Potential GDP Aggregate expenditure AE, E, 45° Y. Real GDP (Y) On the 45 degrees line: GDP is equal…

A: We have 45° line for GDP and aggregate expenditure.

Q: The aggregate expenditure curve shows the relationship between aggregate planned expenditure and…

A: The aggregate expenditure curve is derived from the Keynesian macroeconomic model and shows the…

Q: Which of the following best describes aggregate expenditure? O a. C+I+G+(X+ M) O b.C+I+T+ (X+ M) Oc.…

A: Aggregate expenditure is a sum total of all expenditures in an economy. Usually, the expenditures in…

Q: Value of Marginal Propensity to Consume lies between a. None b. Negative one and Positive one O c.…

Q: Which one of the following is TRUE? Select one: O a. Our productive capacity declines when net…

A: Net Investment = Gross Investment ( money spent on capital assets) - Depreciation of those assets.

Q: Which of the following statements is true about GDP as a measure of a country's economic healt?…

A: GDP is the sum of the monetary value of goods and services produce within a country irrespective of…

Q: When real GDP is greater than Yo in the diagram above: O A Inventories will decrease OB. Aggregate…

A: Equilibrium is the point where aggregate expenditure equals income In goods market income must…

Q: Ceteris paribus, which of the scenarios below will unambiguously lead to an increase in real GDP? O…

A: GDP: It is the total of all values added to the economy.

Q: When the U.S. government removes investment tax credits: O technological innovation advances more…

A: The issue here is the US. To understand the fiscal implications of the government's elimination of…

Q: Which of the following is NOT a component of planned aggregate expenditure? Select one: O a. Planned…

A: Planned aggregate expenditure is the expenditure in an economy planned beforehand. It depends on the…

Q: Question 7 If the MPC in the economy is 0.75, govemment could shift the aggregate demand curve…

A: 7. Here, it is given that the MPC is 0.75. the value of MPC can be used to compute the spending…

Q: When planned aggregate expenditure is less than real GDP, as in the diagram to the right, what…

A: A consumption function shows the relationship between consumption and income level. This is given…

Q: All of the following are true when there is an unplanned decrease in inventories, except: O a.…

A: Inventory is the set of goods, materials, and other items that helps to achieve the resale goal of…

Q: Quèstion 4 Assume the economy's consumption and saving schedules simultaneously shift downward. This…

A: Disposable income is the sum of consumption and savings. Y = C + S

Q: When there's an increase in the cost of electricity for operating firms' machines: O a. The…

A: Here, the electricity cost is a operating cost since it is use in the operations and production.…

Q: Potential GDP Aggregate expenditure AE, E, 45° Real GDP (Y) On the 45 degrees line: O A. GDP is…

A: Aggregate expenditure is the sum of consumption , investment, government spending and net exports in…

Q: Aggregate planned expenditure Select one: O a. equals actual aggregate expenditure at the…

A: Aggregate planned expenditure- It is the sum of all the expenditure by the factors in an economy…

Q: aggregate expenditure

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Question

If unplanned inventory investment is positive, then

Select one:

O a. planned aggregate expenditure must be greater than aggregate output

O b. None of the options

c. planned aggregate expenditure must equal aggregate output

O d. planned aggregate expenditure must be less than aggregate output

Definition Definition Total supply of goods and services in an economy at a certain price level in a specific time period.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

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
If an economy is producing a level of output which is lower than the equilibrium level, planned expenditures total output and. goods and services are being produced than are being demanded. Select one: O a. exceed; more O b. are less than; fewer Oc. exceed; fewer O d. are less than; more Next page
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
Which of the following best describes aggregate expenditure? O a. C+I+G+ (X+ M) b. C+I+T+(X+M) Oc. C+S+G+ (X- M) Od. C+I+G+(X- M) O e. C+I+T+(X– M)
Quèstion 4 Assume the economy's consumption and saving schedules simultaneously shift downward. This must be the result of: OA. An increase in household wealth. O B. An increase in personal taxes. OC. An increase in disposable income. O D. The expectation of a recession A Moving to another question will save this response. hp
v Question Completion Status: A Moving to another question will save this response. Quèstion 4 Assume the economy's consumption and saving schedules simultaneously shift downward. This must be the result of: O A. The expectation of a recession O B. An increase in household wealth. O C. An increase in personal taxes. O D. An increase in disposable income. Moving to another question will save this response. SHARP AQUOS
Potential GDP Aggregate expenditure AE, E, 45° Y. Real GDP (Y) When real GDP is greater than Yo in the diagram above: O A. inventories will decrease OB. O B: Aggregate expenditure will be less than Real GDP OC. Aggregate expenditure will be equal to Real GDP OD. -inventories will increase Aggregate Expenditure
Question 7 If the MPC in the economy is 0.75, govemment could shift the aggregate demand curve rightward by $30 billion by cutting taxes by $10 billion. O A. true. O B. false.
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
Aggregate planned expenditure decreases if O a. investment increases. O b. real GDP decreases. O c. exports increase. O d. government expenditure on goods and services increases. O e. autonomous consumption increases.
Government spending does not affect the investment schedule. O a. True O b. False; shifts investment schedule to the right O c. False; makes investment schedule steeper or flatter O d. False; shifts investment schedule to the left
Which of the following is NOT a component of planned aggregate expenditure? Select one: O a. Planned investment O b. Government purchases O c. Transfer payments d. Net exports O e. Consumption