When GDP = $2.5 trillion, C = $1.0 trillion, I = $0.6 trillion, G = $0.4 trillion, and NX = $0. Then
A) unplanned inventory change = -$0.5 trillion.
B) equilibrium expenditure = $2.0 trillion.
C) aggregate planned expenditure = $1.6 trillion.
D) unplanned inventory change = $0.5 trillion.
E) aggregate planned expenditure = $2.5 trillion.
D
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Would companies and individuals invest as much in significant research and development if a system of patents were not available? a. Yes they would, because they could still hope to monopolize the market
b. Yes they would, because firms are civic-minded and highly motivated to introduce innovations that improve the standard of living. c. No they would not, because if they made a significant investment in the development, they would be unable to protect the innovations or discoveries long enough to be sufficiently compensated for their efforts. d. No they would not, because the benefits to society of engaging in research and development would be less than the costs to society.
In essence, a consumption tax puts all saving into tax-advantaged savings accounts
a. True b. False Indicate whether the statement is true or false
Select the positive statement that completes the sentence: If wages rise more rapidly than productivity:
A. profits will fall. B. workers will earn 3/4 of GDP. C. the rate of inflation increases. D. policymakers should impose a wage ceiling.
Which of the following formulas is correct? Percentage change in:
A. real income approximates percentage change in price level minus percentage change in nominal income. B. nominal income approximates percentage change in price level minus percentage change in real income. C. price level approximates percentage change in real income minus percentage change in nominal income. D. real income approximates percentage change in nominal income minus percentage change in price level.