Refer to the above figure. There is a $100 million unplanned decrease in inventories at an regate output level of $500 million $1,000 million $1,200 million $1.300 million
Refer to the above figure. There is a $100 million unplanned decrease in inventories at an regate output level of $500 million $1,000 million $1,200 million $1.300 million
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Answer the given question with a proper explanation and step-by-step solution.
![Demand
$1,200
$1,160
$1000
$600
$200
$500
$1000
Demand = Y
$1,200
Demand =a-bTO+I+G+EX-IM+b(1-t)Y
Y
Aggregate Income/
Aggregate Output]
23.) Refer to the above figure. There is a $100 million unplanned decrease in inventories at an
aggregate output level of
A) $500 million
B) $1,000 million
C) $1,200 million
D) $1,300 million](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff1aba5b6-40da-4125-8216-36d55e09c453%2F87136504-c345-4a09-9f67-247d802a26d1%2Fd0350fa_processed.png&w=3840&q=75)
Transcribed Image Text:Demand
$1,200
$1,160
$1000
$600
$200
$500
$1000
Demand = Y
$1,200
Demand =a-bTO+I+G+EX-IM+b(1-t)Y
Y
Aggregate Income/
Aggregate Output]
23.) Refer to the above figure. There is a $100 million unplanned decrease in inventories at an
aggregate output level of
A) $500 million
B) $1,000 million
C) $1,200 million
D) $1,300 million

Transcribed Image Text:24.) Refer to the above figure. Unplanned inventories increase and output decreases when
aggregate output is
A) $0
B) $500 million
C) $1,000 million
D) None of the above
25.) Refer to the above figure. Unplanned inventories decrease and output increases when
aggregate output is
A) $1,000 million
B) $1,160 million
C) $1,200 million
D) None of the above
26.) Refer to the above figure. The best approximation for the demand function is the following:
A) $200 +0.6Y
B) $200+ 0.8Y
C) $100+0.6Y
D) None of the above
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