Ignoring the government and foreign sectors, there is an unplanned decrease in inventories of $80 billion at the current level of real Gross Domestic Product (GDP) of $15 trillion. From this information, we know that
A. consumption expenditures equal $15 trillion less saving less $80 billion.
B. saving equals $80 billion.
C. planned investment is $80 billion more than planned saving.
D. planned investment is $80 billion less than planned saving.
Answer: C
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For a country in the process of development, a high saving rate is generally
A. helpful, because it makes resources available for investment. B. helpful, because it causes a rapid growth of aggregate demand and thus makes it easier to capture economies of scale. C. harmful, because it causes a stagnation of aggregate demand. D. harmful, because it promotes imports of consumer goods.
In general economic environments that correspond to lower levels of planned aggregate expenditure for a given level of Y have PAE curves that are:
A. lower on the expenditure diagram. B. higher on the expenditure diagram. C. equivalent at point in the diagram. D. at multiple points on the diagram.
A nation has a population of 300 million people. Of these, 100 million are retired, in the military, in institutions, or under 16 years old. There are 190 million who are employed and 10 million who are unemployed. What is the unemployment rate?
a. 1.9 percent b. 10 percent c. 2 percent d. 5 percent
When you are maximizing your utility for product A,
A. marginal utility of A = 0. B. marginal utility of A = 1. C. marginal utility of A = price of A. D. None of these choices are true.