Suppose real GDP is at 1,500, which of these will occur? Planned $4,000 Supply 45-degree line aggregate spending, AEPlanned (billions of dollars) AEplanned 3,000 Demand 2,000 1,400 1,000 800 $500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Real GDP (billions of dollars) Inventory shrinks, so firms reduce output. Inventory shrinks, so firms increase output. Inventory grows, so firms reduce output. Inventory grows, so firms increase output. O O

Suppose real GDP is at 1,500, which of these will occur? Planned $4,000 Supply 45-degree line aggregate spending, AEPlanned (billions of dollars) AEplanned 3,000 Demand 2,000 1,400 1,000 800 $500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Real GDP (billions of dollars) Inventory shrinks, so firms reduce output. Inventory shrinks, so firms increase output. Inventory grows, so firms reduce output. Inventory grows, so firms increase output. O O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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