Consumption is $5 million, planned investment spending is $8 million, government purchases are $10 million, and net exports are equal to $2 million. If GDP during that same time period is equal to $27 million, what unplanned changes in inventories occurred?
What will be an ideal response?
There was an unplanned increase in inventories equal to $2 million
You might also like to view...
If your nominal income in 2014 was $50,000, and prices doubled between 2014 and 2017, to have the same real income, your nominal income in 2017 must be
A) $50,000. B) $75,000. C) $90,000. D) $100,000.
The snob effect corresponds best to a
A) negative network externality. B) Giffen good. C) positive network externality. D) bandwagon effect.
The period of growth in real GDP between the trough of the business cycle and the next peak is called the:
a. recessionary phase. b. recovery phase. c. contractionary phase. d. cyclical phase.
An increase in the supply of bonds
A) raises the interest rate and increases equilibrium quantity of bonds. B) raises the interest rate and decreases equilibrium quantity of bonds. C) lowers the interest rate and decreases equilibrium quantity of bonds. D) lowers the interest rate and increases equilibrium quantity of bonds.