When the economy is operating at the equilibrium level of? GDP, we know that
A) total planned real consumption expenditures equal real GDP.
B) planned real investment spending equals real net exports of zero.
C) total planned real expenditures equal real GDP.
D) real net exports equal inventory changes.
Answer: C) total planned real expenditures equal real GDP.
You might also like to view...
As a result of importing a good, domestic consumers ________ the quantity consumed and the price of the good ________
A) increase; rises B) decrease; rises C) decrease; falls D) increase; does not change E) increase; falls
An increase in rent will ordinarily lead to
a. an increase in usage of land that was formerly idle. b. a decrease in total land employed. c. less-intensive usage of land. d. a decrease in the income of landlords.
The labor demand curve:
A. is made up of workers who want to work for firms at each given wage. B. shows that the number of people who want to work increases as the wage increases. C. is provided by firms who want to hire workers at each given wage. D. shows number of workers who are willing and able to work at higher wages.
Refer to the above diagram. If aggregate supply shifts from AS1 to AS3, then real domestic output will:
A. increase and the price level will increase. B. decrease and the price level will decrease. C. increase and the price level will decrease. D. decrease and the price level will increase.