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
Q: What is your prediction for the economy when you observe that inventories are taking an unplanned…
A: In an economy, unplanned Inventory refers to the amount of goods and services that are not planned…
Q: The part of consumption that is independent of disposable income is known as * OAutonomous…
A: Note: As you have asked multiple questions, we will solve the first question for you. If you want…
Q: G IM AE 200 200 200 s00 400 100 500 600 -100 200 500 400 150 Refer to the data above to answer this…
A: here we calculate the value of the Multiplier and choose the correct option so the calculation of…
Q: In the figure, equilibrium expenditure is equal to Aggregate planned expenditure (trillions of 2012…
A: In an economy, the equilibrium expenditure is calculated in different ways. The given graph shows…
Q: Quèstion 27 $60 $40 $20 $50 + 100 150 200 Disposable Income(Y) -20 Refer to the diagram. The average…
A: The graph shows savings curve that shows the relationship between disposable income and savings.
Q: QUESTION 21 Refer to the information provided in Figure 8.9 below to answer the questions that…
A: Aggregate expenditure is the sum of all expenditures made by individuals, firms and government…
Q: Consumption spending is $3.71 trillion, spending on nondurable goods is $1.215 trillion, and…
A: Durable goods are those consumer goods which do not wear out quickly and last a long time.…
Q: The consumption schedule relates: O consumption to saving. O disposable income to domestic income. O…
A: Consumption schedule is a table that shows the relationship between Y(Income) and Consumption…
Q: A country reports that unplanned inventories increased during 2019. The increase in unplanned…
A: In an economy, inventory refers to the amount of output produced in a specific year and stocked at a…
Q: Recession? O a) rising real estate values O b) a decrease in income tax rates Oc) an increase in…
A: Ans. is option (e) reduced wealth from falling stock prices.
Q: The Canadian economy produces a vast array of goods and services, trom cars to cannabis Suppose that…
A: In an economy, GDP is the sum of the components of aggregate demand that are consumption, net…
Q: The economy of HOYA has a spending mulipilier of 4. Based only on this information, we know that in…
A: The multiplier refers to how much change in the injection in any economy increases the level of…
Q: The components of aggregate expenditure are consumption expenditure O a. investment, government…
A: The aggregate expenditure refers to the total expenditure in an economy. When the economy is in…
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: The table gives real GDP (Y) and its components in billions of dollars. If real GDP is $100 billion,…
A: If real GDP is $100 billion, aggregate planned expenditure is more than real GDP. Option b is…
Q: When the general price level falls Selectione Oa. investment falls as a result of the real wealth…
A: The fall in the general price level leads to a change in the spending of the consumers which is…
Q: Refer to problem 2. The equilibrium level of real GDP is * O $2,500 O $2,400 O $2,300 O $2,200
A: The real GDP is said to be at equilibrium when the total amount of output produced in an economy is…
Q: Assume consumption is represented by the following: C = $400 + 0.5Y. Also assume that planned…
A: Given information, Consumption: $400 + 0.5Y Investment: $100 To find: equilibrium level of income
Q: QUESTION 4 If an increase of $5 billion in investment is associated with an increase of $50 billion…
A: Multiplier: It is defined as the number of times by which the income increases due to an increase in…
Q: Which of the following statements are correct? Select one: O a. Households smooth their consumption…
A: In macroeconomics, the household sector consumes the final items created by the production sector.…
Q: The GDP of the U.S. in 2014 was around $17.4 trillion. This means Lütfen birini seçin: O A. that…
A: Gdp is the value of all the goods and services produced in an country during a particular period of…
Q: QUESTION 1 Below is the data for an economy in the year 2016. Gross Domestic Product = $25,000…
A: Aggregate expenditure is the sum of consumption, investment, government spending and net exports.
Q: What is the formula for the marginal propensity to expend? A aggregate expenditures/A national…
A: The economies around the world tend to have various entities who work with the motive of maximizing…
Q: Given the data shown in the table below, if planned investment increased by $100, the new…
A: GDP is the value of all final goods and services produced in an economy over a given period of time.…
Q: On a graph of a consumption function, what is the significance of the 45-degree line? O a. It…
A: Answer: a (It connects all points where desired consumption equals actual disposable income)…
Q: If output is less than planned aggregate expenditure, there will be Lütfen birini seçin: O A. an…
A: In economics, the current value of all finished commodities and services in the economy is aggregate…
Q: Assume an economy with a coal producer and a steel producer. In a giver ons of coal, selling for $5…
A: Given that The coal producer pays $50 million wages and steel producer pays $40 million wages,…
Q: If real GDP is $2200 billion, the GDP deflator is 110, nominal net exports are $100 billion, nominal…
A: Gross domestic product(GDP) measures the money value of all final goods and services produced in an…
Q: If deflation is OCcurring and nominal Gross Domestic Product (GDP) is increasing over time, then…
A: GDP is considered an important factor to evaluate the stability, growth, and performance of an…
Q: 63. Fatima's disposable income increases by $1000, and she spends $600 of it. Fatima's a. MPS is 0.6…
A: The marginal propensity to save is the portion of each extra dollar of income of a household which…
Q: During 2019, a country reported that its real GDP increased by $3.0 billion. If the slope of its…
A: Slope of aggregate planner expenditure is the marginal propensity to consume . And we know that…
Q: What is the expenditure approach to measuring GDP? The expenditure approach to measuring GDP sums…
A: An expenditure approach is an approach that sums all the spending activities of the economy. These…
Q: The economy is initially in equilibrium at output Yo. where the aggregate expenditure (AE) line…
A: The higher the worth level, the lower the combination expenditures curve and therefore the lower the…
Q: When the general price level falls Select one: a. investment falls as a result of the real wealth…
A: The real wealth effect explains that if the price level decreases, then the purchasing power of the…
Q: If taxes fall and government spending rises by the same amount, there is very little change in GDP.…
A: When the federal government spends more money than it receives in taxes in a given year, it runs a…
Q: What is equilibrium expenditure? How is equilibrium expenditure determined? Equilibrium expenditure…
A: We’ll answer the first question since the exact one wasn’t specified (numbering of questions is…
Q: Which of the following will shift the consumption function upward? O a. An increase in disposable…
A: As the income of consumer increases, they can spend more money on consuming the goods and services.…
Q: Quèstion 8 In an open mixed economy, the inflationary expenditure gap may be described as the O A.…
A: Inflationary expenditure gap occurs when the actual equilibrium GDP (i.e., intersection point of AD…
Q: Statement A: As disposable income goes up, the APC falls but APS increases. Statement B: As…
A: Average propensity to consume(APC) indicates the part of income that is kept for consumption…
Q: Which of the following is most likely to cause a rightward shift of the investment demand curve? O…
A: A rightward shift of the investment demand curve implies an increase in the demand for investment. A…
Q: assify each of the following items as a final good or an intermediate good, and identify whether it…
A: Intermediate goods : These are those goods which are not ready for final consumption . These goods…
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: 50. As disposable income increases, O a. consumption and saving both decrease O b. consumption…
A: 50) Disposable income is the sum of consumption and savings.
Q: Suppose that the economy is presently operating at ful employment. If there is an increase in…
A: In economics, the full employment level or the potential GDP level is achieved when all the…
Q: A $1.5 trillion increase in investment (a component of autonomous expenditure) leads equilibrium…
A: An increase in autonomous expenditure by $1.5 trillion leads to an increase in equilibrium…
Q: If the multiplier is 5 and investment increases by $3 billion, equilibrium real GDP will increase…
A: We are given, Multiplier = 5 Increase in investment = $3 billion To find, increase in equilibrium…
Q: Many economists argue that real GDP is Select one: O a. not a good measure of economic well-being…
A: Many economists do not consider real GDP as a good measure of standard of living or wellbeing as GDP…
Q: 12 63. Fatima's disposable income increases by $1000, and she spends $600 of it. Fatima's a. MPS is…
A: Formula for MPC=change in consumption/change in income =600/1000=0.6 MPC+MPS=1 Therefore MPS=1-MPC…
Q: Which of the following is an injection in the circular flow of income? O Investment O Taxes O…
A: The injections are economic factors (or variables) that help in increasing the output level in an…
Q: Which of the following would NOT lead to an increase in equilibrium Y*? Select one: O a. A downwards…
A: Y* is the sum of consumption spending, investment spending, government spending, and net exports.
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- As consumer confidence in the future increases, consumption will _________and saving will O decrease; increase O decrease; decrease O increase; decrease O increase; increase OFWhen there's an increase in the cost of electricity for operating firms machines: O a. The investment demand curve will shift to the right O b. The consumption schedule will shift downward O c. The saving schedule will shift downward O d. The investment demand curve will shift to the leftQUESTION 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
- The difference between planned and unplanned spending is O Always negative O Inventories O Unplanned changes in inventories O Always positiveQuèstion 5 $60 $40 -- $20 $50 100 150 200 Disposable Income(Y) -20 Refer to the diagram. The average propensity to consume: O A. is greater than 1 at all levels of disposable income above $100. O B. cannot be determined from the information given. O C, is equal to the average propensity to save. O D. is greater than 1 at all levels of disposable income below $100. Saving (S)Problem 1 The various expenditure categories within the economy are: C = 600+ 0.8Yd | = 800 G = 600 NX = 0 T= 700 Refer to problem 1. Equilibrium Real GDP is O 7200 O 4200 O 1800 O 5500
- 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 leftQuestion: How can there be "Autonomous Spending" even when a person has zero income? O a) All of the above are correct. b) People need to consume at least a minimum to stay alive. UO People need a certain level of consumption even if they do not have income. O d) People spend money from their savings, borrowing or from unemployment or pension pay.Problem 1 Given the following data for a closed economy I= 3400 Planned Investment G=4000 Government Spending C= 3,800 + 0.8 Yd Consumption function T= 1000 Taxes
- If consumption is $30,000 when income is $35,000, and consumption increases to $35,000 when income increases to $43,000, the MPS is Select one: O a. None of the options O b. 0 O c. 0.625 O d. 0.375When 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)When do net exports of goods and services increase? ... Net exports of goods and services increase when O A. investment increases B. government expenditure on goods and services increases C. exports of goods and services increase and imports of goods and services increase O D. exports of goods and services decrease but imports of goods and services decrease by more than exports dec
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