When aggregate expenditure is less than? GDP, which of the following is? true?
A) There was an unplanned increase in inventories.
B) Households bought more new homes than they anticipated.
C) Firms spent more on capital goods than they anticipated.
D) All of the above must be true when aggregate expenditure is less than GDP.
Ans: A) There was an unplanned increase in inventories.
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Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. The opportunity cost of producing a unit of X is
A) 1 unit of Y per unit of X for Agnes and 2 units of Y per unit of X for Brenda. B) 1 unit of Y per unit of X for Agnes and 1/2 unit of Y per unit of X for Brenda. C) 1 hour for Agnes and 1/2 hour for Brenda. D) 1 hour for Agnes and 2 hours for Brenda.
Which of the following actions would cause the aggregate demand curve to shift to the left?
A) an increase in consumer spending caused by a cut in the personal income tax rate B) an increase in government spending caused by increased spending on highways and bridge construction C) a decrease net export spending caused by an appreciation of the home currency D) an increase in exports caused by an increase in economic activity in the European Union
If autonomous investment decreases by $60 billion, equilibrium real GDP demanded will
What will be an ideal response?
Suppose the price of a product rises and the total revenue of sellers increases.
What will be an ideal response?