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?
a. There was an unplanned increase in inventories equal to $2 million.
b. There was no unplanned change in inventories.
c. There was an unplanned decrease in inventories equal to $2 million.
d. There was an unplanned decrease in inventories equal to $19 million.
a. There was an unplanned increase in inventories equal to $2 million.
You might also like to view...
The table below shows a pizzeria's fixed cost and variable cost at different levels of output. Pizza's sell for $20 each.Number ofPizzas Per DayFixed Cost($/Day)Variable Cost($/Day)050002550015050500250755004501005008501255001,650When the pizzeria makes 125 pizzas per day, its total revenue is:
A. $2,500 B. $125 C. $1,250 D. $20
Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 3.1 shows how much of each good Jesse and April can paint in one hour. April's opportunity cost of painting one snowboard is painting
A) 1.5 kites. B) 3 kites. C) 4 kites. D) 12 kites.
Suppose an economy consists of 500,000 individuals 16 years and older, 260,000 are employed, and 21,000 are unemployed but actively seeking work. In this example the labor force participation rate is approximately
A) 4 percent. B) 48 percent. C) 52 percent. D) 56 percent.
Suppose we live in an exchange economy with two goods. Together, we own 300 of good 1 and 300 of good 2. My tastes are captured by the utility function 
and yours are captured by the utility function 
.
a. Calculate the portion of the contract curve that lies in the interior of the Edgeworth Box.
b. Can you make intuitive sense of your answer?
What will be an ideal response?