In the aggregate expenditure (AE) model, when real GDP exceeds aggregate planned expenditure, actual inventories ________ planned inventories and real GDP ________

A) are less than; decreases
B) exceed; increases
C) exceed; does not change
D) are less than; increases
E) exceed; decreases


E

Economics

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Economists have found that the price elasticity of demand for water is higher in the summer than in the winter. Why is this likely to be so?

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The slope of the indifference curve between steak and lobster is always equal to the ratio of their prices

Indicate whether the statement is true or false

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Which of the following accurately describes possible positions taken by hedgers?

A) may take a short position in the futures market to offset a long position in the spot market B) may take a short position in the spot market to offset a long position in the futures market C) may take a long position in the spot market to offset a short position in the futures market D) may take a long position in the futures market to offset a long position in the spot market

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The creation of markets that were previously "missing":

A. can create winners and losers. B. increases total surplus. C. benefits those who interact in the new markets. D. All of these are true.

Economics