At the equilibrium level of aggregate expenditure, what does aggregate expenditure equal? What happens at other levels of real GDP to bring about an equilibrium?
What will be an ideal response?
At the equilibrium level of aggregate expenditure, aggregate expenditure is equal to real GDP. At levels of real GDP where aggregate expenditure is greater than real GDP, business inventories are less than their target levels. In this situation, businesses increase their production, so output increases and real GDP increases. At levels of real GDP where aggregate expenditure is less than real GDP, business inventories are greater than their target levels. In this situation, businesses decrease their production, so output decreases and real GDP decreases.
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The above figure shows the market for steel ingots. If the market is competitive, then the competitive market level of output is
A) 100 units. B) 150 units. C) 50 units. D) 300 units.
Longer-term forecasts of the U.S. budget, a decade or more into the future, predict
a. small surpluses. b. enormous surpluses. c. small deficits. d. enormous deficits.
Winston Churchill once said
a. "The inherent virtue of capitalism is the unequal sharing of blessings. The inherent virtue of socialism is the equal sharing of miseries.". b. "The inherent vice of capitalism is the unequal sharing of blessings. The inherent virtue of socialism is the equal sharing of miseries.". c. "The inherent vice of capitalism is the unequal sharing of blessings. The inherent vice of socialism is the equal sharing of miseries.". d. "The inherent virtue of capitalism is the unequal sharing of blessings. The inherent vice of socialism is the equal sharing of miseries.".
The domestic demand and supply for sugar are Qd = 40,000 ? 200P and QSD = 10,000 + 300P. The foreign supply is QSF = 20,000 + 100P. Suppose an import quota of 5,000 is imposed in the domestic market. How many units of sugar will domestic producers supply after the quota is imposed?
A. 30,000 B. 25,000 C. 35,000 D. 20,000