56 The table gives real GDP (Y) and its components in billions of dollars.If real GDP is $100 billion, explain the process that moves the economy toward equilibrium expenditure.If real GDP is $100 billion, aggregate planned expenditure isreal GDP.O A. less thanO B. greater thanO C. equal toAs the economy moves toward equilibrium expenditure, an unplannedproduction.in inventories leads firms toO A. increase; decreaseO B. decrease; increaseO C. decrease; decreaseO D. increase; increaseClick to select your answer.MacBook Air

If real GDP is $100 billion, aggregate planned expenditure is more than real GDP. Option b is…

The table gives real GDP (Y) and its components in billions of dollars. If real GDP is $100 billion, explain the process that moves the economy toward equilibrium expenditure. If real GDP is $100 billion, aggregate planned expenditure is real GDP, O A. less than O B. greater than OC. equal to in inventories leads firms to As the economy moves toward equilibrium expenditure, an unplanned production. O A. increase; decrease O B. decrease; increase O C. decrease; decrease O D. increase; increase

The table gives real GDP (Y) and its components in billions of dollars. If real GDP is $100 billion, explain the process that moves the economy toward equilibrium expenditure. If real GDP is $100 billion, aggregate planned expenditure is real GDP, O A. less than O B. greater than OC. equal to in inventories leads firms to As the economy moves toward equilibrium expenditure, an unplanned production. O A. increase; decrease O B. decrease; increase O C. decrease; decrease O D. increase; increase

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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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
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
which seems to be correct?
Which of the following is INCORRECT? a. The multiplier dampens the increase in income that occurs during expansions and brings the economy to a new equilibrium GDP. O b. Firms experience unplanned decreases in inventories as expansions begin. C. Firms increase production in response to unplanned decreases in inventories. O d. Expansions usually begin with an increase in autonomous spending.
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 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.
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)
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.
How will an increase in taxes applied to businesses affect the GDP based on the Expenditure Approach? O a. Negative effect on net exports O b. Negative effect on the gross domestic capital formation O c. Increase in government's budget O d. Positive effect on private consumption
The aggregate expenditure curve shows the relationship between aggregate planned expenditure and Select one: A. consumption expenditure. O B. real GDP. C. the price level. D. the interest rate. O E. disposable income.
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