EBK MACROECONOMICS
7th Edition
ISBN: 8220106812686
Author: O'Brien
Publisher: PEARSON
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Question
Chapter 12, Problem 12.3.9PA
Subpart (a):
To determine
The increase or the decrease of inventories.
Subpart (b):
To determine
The increase or the decrease of inventories.
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Students have asked these similar questions
5. Briefly explain whether you agree or disagree with the following statement: "Real GDP
is currently $17.2 trillion, and potential GDP is $17.4 trillion. If the president would like
to increase the government purchases by $200 billion or cut taxes by $200 billion, the
economy could be brought to equilibrium at potential GDP."
6. In 2012, an executive at Honda Motor Company announced that the firm would be
moving more of its car production from Japan to the United States. A newspaper article
stated: "The move, driven by the strength of the Japanese yen, will also result in Honda
significantly reduce the number of vehicles it imports into North America from plants in
Japan."
a. What does the article mean by the strength of the Japanese yen?
b.
Why would a strong yen case Honda to produce more cars in the United States and
fewer cars in Japan?
Focus
Accessibility: Investigate
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Click on the icon to read the news clip, then complete the following steps.
Business inventories fall when real GDP rises because
1800-
1600-
Aggregate expenditure (billions of 2002 dollars)
○ A. inventories are falling from above target to their target levels
1400-
B. firms put more production time into producing consumption goods and
services
OC. firms put more production time into producing exports
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OD. both B and C are correct
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The graph shows the aggregate planned expenditure curve.
Draw a new AE curve to show the effect of an increase in exports and business
investment. Label it AE₁.
8004
800
1000
1200
1400
45 degree line
G
AE
1600
1800
Draw a point at the new equilibrium expenditure.
Draw an arrow along the new AE curve to show the effect of the increase in real
GDP on consumption expenditure.
Real GDP (billions of 2002 dollars)
>>> Draw only the objects specified in the question.
-
News clip
Business Inventories Decline, GDP Rises
Real gross domestic product (GDP)…
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Chapter 12 Solutions
EBK MACROECONOMICS
Ch. 12.A - Prob. 1RQCh. 12.A - Prob. 2RQCh. 12.A - Prob. 3RQCh. 12.A - Prob. 4RQCh. 12 - Prob. 12.1.1RQCh. 12 - Prob. 12.1.2RQCh. 12 - Prob. 12.1.3RQCh. 12 - Prob. 12.1.4PACh. 12 - Prob. 12.1.5PACh. 12 - Prob. 12.1.6PA
Ch. 12 - Prob. 12.1.7PACh. 12 - Prob. 12.1.8PACh. 12 - Prob. 12.1.9PACh. 12 - Prob. 12.2.1RQCh. 12 - Prob. 12.2.2RQCh. 12 - Prob. 12.2.3RQCh. 12 - Prob. 12.2.4RQCh. 12 - Prob. 12.2.5RQCh. 12 - Prob. 12.2.6PACh. 12 - Prob. 12.2.7PACh. 12 - Prob. 12.2.8PACh. 12 - Prob. 12.2.9PACh. 12 - Prob. 12.2.10PACh. 12 - Prob. 12.2.11PACh. 12 - Prob. 12.2.12PACh. 12 - Prob. 12.2.13PACh. 12 - Prob. 12.2.14PACh. 12 - Prob. 12.2.15PACh. 12 - Prob. 12.3.1RQCh. 12 - Prob. 12.3.2RQCh. 12 - Prob. 12.3.3RQCh. 12 - Prob. 12.3.4RQCh. 12 - Prob. 12.3.5RQCh. 12 - Prob. 12.3.6PACh. 12 - Prob. 12.3.7PACh. 12 - Prob. 12.3.8PACh. 12 - Prob. 12.3.9PACh. 12 - Prob. 12.3.10PACh. 12 - Prob. 12.3.12PACh. 12 - Prob. 12.4.1RQCh. 12 - Prob. 12.4.2RQCh. 12 - Prob. 12.4.3RQCh. 12 - Prob. 12.4.4PACh. 12 - Prob. 12.4.5PACh. 12 - Prob. 12.4.6PACh. 12 - Prob. 12.4.7PACh. 12 - Prob. 12.4.8PACh. 12 - Prob. 12.4.9PACh. 12 - Prob. 12.4.10PACh. 12 - Prob. 12.4.11PACh. 12 - Prob. 12.4.12PACh. 12 - Prob. 12.4.13PACh. 12 - Prob. 12.4.14PACh. 12 - Prob. 12.5.1RQCh. 12 - Prob. 12.5.2RQCh. 12 - Prob. 12.5.3RQCh. 12 - Prob. 12.5.4PACh. 12 - Prob. 12.5.5PACh. 12 - Prob. 12.5.6PACh. 12 - Prob. 12.1RDECh. 12 - Prob. 12.2CTECh. 12 - Prob. 12.3CTE
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