If real GDP is $1000 billion and the aggregate expenditure is $850 billion, then the change in inventories will be
A. $150 Billion
B. $1,850 million.
C. –$1,850 million.
D. –$150 million.
Ans: A. $150 Billion
You might also like to view...
A fundamental principle in demand analysis is that a change in price leads to
A) a movement along the demand curve. B) a rightward shift of the demand curve. C) a leftward shift of the demand curve. D) a complementary movement on the supply curve.
The optimal bidding strategy for an oral auction is
a. To shade your bid below your true value and drop out well before it is reached b. To shade your bid below your true value and drop out just when the shaded amount is reached c. To bid drop out when the bidding exceeds your true value d. To size up your competition to determine how much to shade your bid
Which of the following would shift the demand curve for gasoline to the right?
a. a decrease in the price of gasoline b. an increase in consumer income, assuming gasoline is a normal good c. an increase in the price of cars, a complement for gasoline d. a decrease in the expected future price of gasoline
Suppose we know that a monopolist is maximizing its profits. Which of the following is a correct inference? The monopolist has
A. maximized its total revenue. B. set price equal to its average cost. C. equated marginal revenue and marginal cost. D. maximized the difference between marginal revenue and marginal cost.