When the AE line lies above the 45° line,
A) real GDP exceeds aggregate planned expenditure.
B) there are unplanned increases in inventories.
C) aggregate planned expenditure is less than real GDP.
D) the price level is rising.
E) there are unplanned decreases in inventories.
E
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a. True b. False
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a. True b. False Indicate whether the statement is true or false
Specialization in production and then trading with other countries
A. Change the mix of output for each country and increase total world output. B. Mean that every citizen in every country is better off. C. Increase the standard of living for rich countries but not for poor countries. D. Change the mix of output for rich countries but not for poor countries.
Gross exports for the United States depend most directly on the
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