Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 23, Problem 4.1P
To determine

Change in inventories, real GDP and equilibrium level of output.

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A number of economists contend that official measures of Canadian gross private investment expenditures are understated. For instance, household spending on education, such as college tuition expenditures, is counted as consumption. Some economists suggest that these expenditures, which amount to 6 percent of GDP, should be counted as investment instead. investment if this suggestion was adopted? Based on this 6 percent estimate and the estimated 2020 Q2 GDP being $1,820,369 million, how many millions of dollars would shift from consumption. Smillion would shift from consumption to investment if this suggestion was adopted. (Enter your response rounded to the nearest whole number.)
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