Economics For Today
10th Edition
ISBN: 9781337670654
Author: Tucker
Publisher: Cengage
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Question
Chapter 19, Problem 6SQ
To determine
The impact over unplanned inventory when the GDP is $6 trillion.
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Students have asked these similar questions
2. Describe the circular flow of income and expenditures. Explain.
A recession will occur if an economy’s actual GDP ____ its potential GDP.
a.
rises above
b.
equals
c.
grows faster than
d.
falls below
4
All of the following are components of aggregate expenditure except
Select one:
a. actual government purchases
b. net export
c. planned investment
Chapter 19 Solutions
Economics For Today
Ch. 19.4 - Prob. 1YTECh. 19 - Prob. 1SQPCh. 19 - Prob. 2SQPCh. 19 - Prob. 3SQPCh. 19 - Prob. 4SQPCh. 19 - Prob. 5SQPCh. 19 - Prob. 6SQPCh. 19 - Prob. 7SQPCh. 19 - Prob. 8SQPCh. 19 - Prob. 9SQP
Ch. 19 - Prob. 10SQPCh. 19 - Prob. 1SQCh. 19 - Prob. 2SQCh. 19 - Prob. 3SQCh. 19 - Prob. 4SQCh. 19 - Prob. 5SQCh. 19 - Prob. 6SQCh. 19 - Prob. 7SQCh. 19 - Prob. 8SQCh. 19 - Prob. 9SQCh. 19 - Prob. 10SQCh. 19 - Prob. 11SQCh. 19 - Prob. 12SQCh. 19 - Prob. 13SQCh. 19 - Prob. 14SQCh. 19 - Prob. 15SQCh. 19 - Prob. 16SQCh. 19 - Prob. 17SQCh. 19 - Prob. 18SQCh. 19 - Prob. 19SQCh. 19 - Prob. 20SQ
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- Phase in which production, employment and income decline, while inventories increase. 1-depression 2- expansion 3- peak 4-recession 5-trougharrow_forwardWhich of these is not true about aggregate demand? a. It includes consumption, investments, government spending, and imports b. It is the amount of total spending on domestic goods and services in an economy. c. It is what economists call total planned expenditure d. It is similar to gross domestic productarrow_forward1. An increase in the desire to save leads to a decrease in gross domestic product. True or false 2. An increase in investment leads to an increase in gross domestic product. Equilibrium occurs when the forces of expansion and contraction are in equilibrium, that is, when savings are greater than the desired investment. True or false 3. The term aggregate expenditure indicates how the aggregate quantity of goods and services demanded depends on the average price level. True or falsearrow_forward
- GDP in an economy is $8,000 billion. Consumer expenditures are $4,800 billion, government purchases are $1,600 billion, and gross investment is $1,500 billion. Net exports must be $_____ billion. Your Answer: Answer 4arrow_forwardGovernment Purchases = $____ billion Private Gross Investment = $______ billion GDP = $______ billion Disposable Income = $______ billionarrow_forwardAs shown in Exhibit 2, this economy is in macro equilibrium at: Group of answer choices $2 trillion. $4 trillion. $6 trillion. $8 trillion.arrow_forward
- Disposable income ________ when ________. a. decreases; taxes increase b. decreases; transfer payments increase c. increases; government expenditures decrease d. decreases; aggregate income increasesarrow_forwardDisposable income ________ when ________. a.decreases; taxes increase b.decreases; transfer payments increase c.increases; government expenditures decrease d.decreases; aggregate income increasesarrow_forwardUrgently need Suppose jane Purchases a $600000 BMW that was produced in Germany. Which of the following describes how this would be recorded in Canadian GDP accounts. a. Net Exports Increase $60,000 b. Net Exports decrease $60,000 c. Investment increases by $60,000 and net exports increase by $60,000 d. Consumption increases by $60, 000 and net exports decreases by y$60,000 Please fully explain the answer you choose.arrow_forward
- Question 2 Refer to the data in Table 1, the consumption function is C = 200+ 0.8 (Y-T). Fill in the columns in the table columns and identify the equilibrium output. How do firms react to unplanned inventory? Table 1 Income Net Disposable Income Y Taxes Consumption Saving C Government Purchases G Planned Aggregate Expenditure C+I+G Unplanned Inventory Change Y-(C+I+G) S=Yd-C T Yd=Y-T 0 50 200 850 50 200 1700 50 200 2550 50 200 3400 50 200 4250 50 200 ¨¨¨ Planned Investment Spending, I 150 150 150 150 150 150arrow_forwardList and explain ONE of the shortcomings in using the official GDP as a measure of total production in the economy. List and explain ONE of the three reasons why the aggregate demand curve slopes downward.arrow_forward1. Calculate the disposable income from the following table: Flows in the economy of Classica $10 trillion $10 trillion $7 trillion $1 trillion $2 trillion Total Output (GDP) Total Income Consumption Spending (C) Private Investment (I) Government Purchases (G) Net Taxes (T) Household Savings (S) $1.25 trillion S1.75 trillionarrow_forward
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