42 What is equilibrium expenditure? How is equilibrium expenditure determined?Equilibrium expenditure is the level of aggregate expenditure that occurs whenO A. inventory holdings are minimizedO B. aggregate planned expenditure equals real GDPO C. real GDP is maximizedO D. aggregate planned expenditure is maximizedEquilibrium expenditure is determinedO A. by the level of aggregate expenditure that occurs where the AE curve intersects the 45° lineO B. at the point at which the AE curve intersects the x-axisO C. at all points along the 45° lineO D. at all points along the AE curveClick to select your answer.MacBook Air

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What is equilibrium expenditure? How is equilibrium expenditure determined? Equilibrium expenditure is the level of aggregate expenditure that occurs when O A. inventory holdings are minimized OB. aggregate planned expenditure equals real GDP O C. real GDP is maximized D. aggregate planned expenditure is maximized

What is equilibrium expenditure? How is equilibrium expenditure determined? Equilibrium expenditure is the level of aggregate expenditure that occurs when O A. inventory holdings are minimized OB. aggregate planned expenditure equals real GDP O C. real GDP is maximized D. aggregate planned expenditure is maximized

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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Question 1) a) In panel (a) the curve shifts upward, what could cause this? O Increase in G (govermment spending)O Decrease in HH wealth due to a decrease in housing pricesO An increase in the overall price levelo Areduction in govemment spending (G) b) Using Figure 2, if this economy is currently at Y1 and consumer wealth increases, then___O AD1 will shift to the left, reflecting a decrease in the real GDP at every price level.O AD1 willshift to the right. reflecting an increase in the real GDP at every price level.O an upward movement along the AD1 wiltake place., reflecting an increase in the price level.O a downward movement along the AD1 will take place, reflecting a decrease in the price level.
which seems to be correct?
Match each definition to the appropriate component of aggregate demand. Definition The sum of the expenditures of business firms on new plant, equipment, and software and of households on new homes The goods and services purchased by all levels of government The total amount spent by consumers on newly produced goods and services The difference between exports and imports ⒸNet exports O Government spending Consumer Expenditure Which of the following components represents the largest piece of aggregate demand? O Consumer expenditure O Investment spending O Which of the following components represents the smallest piece of aggregate demand? O Consumer expenditure O Government spending O Investment spending ONet exports Investment Spending Government Spending Net Exports O O O O
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.
Aggregate planned expenditure decreases if O a. investment increases. O b. real GDP decreases. O c. exports increase. O d. government expenditure on goods and services increases. O e. autonomous consumption increases.
During 2019, a country reported that its real GDP increased by $3.0 billion. If the slope of its aggregate planned expenditure curve is 0.9, then which of the following might have led to the increase in real GDP? O a. Investment decreased by $0.3 billion. on O b. Exports increased by $0.3 billion. O c. Exports decreased by $0.3 billion. O d. Imports increased by $0.3 billion. O e. Government expenditure on goods and services increased by $3 billion.
v Question Completion Status: A Moving to another question will save this response. Quèstion 4 Assume the economy's consumption and saving schedules simultaneously shift downward. This must be the result of: O A. The expectation of a recession O B. An increase in household wealth. O C. An increase in personal taxes. O D. An increase in disposable income. Moving to another question will save this response. SHARP AQUOS
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Quèstion 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)
An increase in interest rates shifts the Investment Demand curve up and increases Business Investment Expenditures. O True O False Households' autonomous savings is exactly the same as autonomous consumption. O True O False An increase in households' wealth will increase the marginal propensity to consume. O True O False Private-Sector Savings equal Consumption Expenditures at the Break-Even Disposable Income. True O False In National Income Accounting, an increase in unplanned inventory increases actual business investment expenditures (la). O True O False
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
What is the correct option for number 13