The above table gives information for the nation of North Hampton. There are no imports to or exports from North Hampton
a. Find aggregate planned expenditure for each level of real GDP.
b. What is the equilibrium level of real GDP?
a. To calculate aggregate expenditure, for each level of real GDP sum consumption expenditure plus investment plus government purchases. The above table has the answers for each level of real GDP.
b. Equilibrium real GDP is $800 billion because that is the level of real GDP that equals aggregate planned expenditure.
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From the beginning of the 1990s to the year 2000, investment spending as a share of U.S. GDP has tended to
A) decrease. B) remain the same. C) fluctuate wildly. D) increase.
The most accurate quantitative time measure is:
a. Self-report or diary method b. Recall method c. Observation method d. A combination of all of the above methods to allow for cross checks.
According to Keynes, the economy could become stuck at a low income level if:
A. declines in aggregate supply are not accompanied by declines in aggregate demand. B. declines in aggregate demand are not accompanied by declines in aggregate supply. C. aggregate demand and aggregate supply are independent of one another. D. declines in aggregate demand and aggregate supply reinforce one another.
The payment made for the use of money is called
A. investment. B. profit. C. interest. D. dividends.