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
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Chapter1: Making Economics Decisions
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Employment,
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:
a. False
O b. True
(2)
Real Domestic
Output (and
Employment, Income) (GDP -
D Bons
(1)
Possible
Levels of
(4)
A
Expenditures
(C+
Bilions
(7)
Unplanned
Changes in
Inventories
(+or-)
()
Tendency of
Employment,
Output, and
Income
0)
(5)
Investment
Consumption
(C).
Billiom
Saving (S)
Bllons
Miions
Bfons
$370
$375
S-5
$20
S395
S-25
Increase
90
90
20
410
-20
Increase
410
405
20
25
-IS
Increase
( 55
430
420
10
20
440
-10
Increase
450
435
IS
20
455
-5
Increase
470
450
20
20
470
Equilibrium
465
25
20
+5
Decrease
SI0
480
30
20
500
+10
Decrease
S30
495
35
20
SIS
+15
Decrease
(10) S
S50
SI0
S30
+20
Decrease
dareciaion and efor or eome are rpeetoed and met trsing occursthe houshol secor ofthe econony then GOP
meureof dome o lNRand D T mes ha hoholds receea Diealhe vlflo
of he econony then GDP
med ing occu
the houhd
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.
Transcribed Image Text:Employment, 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: a. False O b. True (2) Real Domestic Output (and Employment, Income) (GDP - D Bons (1) Possible Levels of (4) A Expenditures (C+ Bilions (7) Unplanned Changes in Inventories (+or-) () Tendency of Employment, Output, and Income 0) (5) Investment Consumption (C). Billiom Saving (S) Bllons Miions Bfons $370 $375 S-5 $20 S395 S-25 Increase 90 90 20 410 -20 Increase 410 405 20 25 -IS Increase ( 55 430 420 10 20 440 -10 Increase 450 435 IS 20 455 -5 Increase 470 450 20 20 470 Equilibrium 465 25 20 +5 Decrease SI0 480 30 20 500 +10 Decrease S30 495 35 20 SIS +15 Decrease (10) S S50 SI0 S30 +20 Decrease dareciaion and efor or eome are rpeetoed and met trsing occursthe houshol secor ofthe econony then GOP meureof dome o lNRand D T mes ha hoholds receea Diealhe vlflo of he econony then GDP med ing occu the houhd 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.
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