The above table gives real GDP and the aggregate expenditure schedule. When real GDP is $10 billion, the amount of unplanned investment is
A) $0.5 billion.
B) -$20.5 billion.
C) -$0.5 billion.
D) $20.5 billion.
E) unknown.
C
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An organization that tries to encourage the flow of investment to poor countries is the
a. World Bank. b. Organization of Less Developed Countries. c. Alliance of Developing Countries. d. International Development Alliance.
Which of the following statements accurately describes the economy with an inflationary gap?
a. SRAS intercepts AD3 at ESR.
b. RGDP3 is less than RGDPNR.
c. SRAS intercepts LRAS at ESR.
d. ESR occurs along LRAS.
The price of a coupon bond can best be described as the:
A. future value of the coupon payments. B. present value of the face value plus the present value of the coupon payments. C. future value of the coupon payments and the face value. D. present value of the face value.
An agribusiness firm may undertake three alternatives: buy cane sugar and manufacture various sugars and sweets, making a profit of $12 million; buy corn and produce ethanol, making a profit of $16 million; or buy wheat and produce breads, rolls, and
pastries, making a profit of $13 million. The opportunity cost associated with these three choices is A) $4 million. B) $3 million. C) $13 million. D) $16 million.