Employment,Unanticipated inflation arbitrarily redistributes real income at the expense of fixed-income receivers, creditors, and savers. If inflation is anticipated, individuals andbusinesses may be able to take steps to lessen or eliminate adverse redistribution effects.Select one:a. FalseO b. True(2)Real DomesticOutput (andEmployment, Income) (GDP -D Bons(1)PossibleLevels of(4)AExpenditures(C+Bilions(7)UnplannedChanges inInventories(+or-)()Tendency ofEmployment,Output, andIncome0)(5)InvestmentConsumption(C).BilliomSaving (S)BllonsMiionsBfons$370$375S-5$20S395S-25Increase909020410-20Increase4104052025-ISIncrease( 554304201020440-10Increase450435IS20455-5Increase4704502020470Equilibrium4652520+5DecreaseSI04803020500+10DecreaseS304953520SIS+15Decrease(10) SS50SI0S30+20Decreasedareciaion and efor or eome are rpeetoed and met trsing occursthe houshol secor ofthe econony then GOPmeureof dome o lNRand D T mes ha hoholds receea Diealhe vlfloof he econony then GDPmed ing occuthe houhdIn the above table, at the $410 billion real domestic output (RGDP) level, which of the following would not occur?Select one:a. Businesses would produce lessb. Inventories would decrease unplanned wayc. Aggregate expenditure exceeds RGDPd. Real domestic output and aggregate expenditure would grow until they reach an equilibrium.

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Unanticipated inflation arbitrarily redistributes real income at the expense of fixed-income receivers, creditors, and savers. If inflation is anticipated, individuals and businesses may be able to take steps to lessen or eliminate adverse redistribution effects. Select one: o a. False o b. True (2) Real Domestice Output (and Employment, ncome) (GDP- D ens Psible (5) Aggegate Unplanned Tendency of Levels of Consumption () Saving (S Bons Ivestment Espenditures Changs in Iventories (+-) Employment, Output, and Millons Bom Bons Income 40 S375 $20 S-25 Incresse 20 -20 Increse 20 -IS Increase 400 00 10 20 -10 Increse IS 20 Increase 470 20 470 Eqrium 910 25 Decrease 75 S10 30 s00 10 Decrese 35 SIS Dee (10) s S50 +20 Decree he In the above table, at the $410 billion real domestic output (RGDP) level, which of the following would not occur? Select one: a. Businesses would produce less b. Inventories would decrease unplanned way C. Aggregate expenditure exceeds RGDP d. Real domestic output and aggregate expenditure would grow until they reach an equilibrium.

Unanticipated inflation arbitrarily redistributes real income at the expense of fixed-income receivers, creditors, and savers. If inflation is anticipated, individuals and businesses may be able to take steps to lessen or eliminate adverse redistribution effects. Select one: o a. False o b. True (2) Real Domestice Output (and Employment, ncome) (GDP- D ens Psible (5) Aggegate Unplanned Tendency of Levels of Consumption () Saving (S Bons Ivestment Espenditures Changs in Iventories (+-) Employment, Output, and Millons Bom Bons Income 40 S375 $20 S-25 Incresse 20 -20 Increse 20 -IS Increase 400 00 10 20 -10 Increse IS 20 Increase 470 20 470 Eqrium 910 25 Decrease 75 S10 30 s00 10 Decrese 35 SIS Dee (10) s S50 +20 Decree he In the above table, at the $410 billion real domestic output (RGDP) level, which of the following would not occur? Select one: a. Businesses would produce less b. Inventories would decrease unplanned way C. Aggregate expenditure exceeds RGDP d. Real domestic output and aggregate expenditure would grow until they reach an equilibrium.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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