In the above figure, point E represents the level of real GDP at which planned saving equals planned investment. At point C

A) changes in inventories cannot be determined.
B) unused industrial capacity exists in the economy.
C) unplanned inventories increase.
D) unplanned inventories decrease.


C

Economics

You might also like to view...

The calculation of GDP using the income approach EXCLUDES

A) rent. B) interest. C) environment quality. D) wages. E) profit.

Economics

The above figure shows the market for rice in Japan. S2 represents the domestic supply curve, and S1 represents the world supply curve. Suppose a free market exists. The smallest tariff necessary to completely eliminate imported rice is

A) $1 per unit. B) $2 per unit. C) $3 per unit. D) $4 per unit.

Economics

Which of the following is most likely to increase long-run aggregate supply in an economy?

What will be an ideal response?

Economics

Explain why the long-run aggregate supply curve is vertical

What will be an ideal response?

Economics