In the above figure, point E represents the level of real GDP at which planned saving equals planned investment. At point C
A. unplanned inventories increase.
B. changes in inventories cannot be determined.
C. unplanned inventories decrease.
D. unused industrial capacity exists in the economy.
Answer: A
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Indicate whether the statement is true or false
Assume the properties of normal indifference curves. Where will a consumer maximize their utility?
What will be an ideal response?
The law of diminishing returns to an input says that if other inputs are fixed
A. the variable input will eventually decrease with more output. B. output eventually will decrease with increases of the variable input. C. revenue will eventually decrease with increases in the variable input. D. change in output will eventually decrease with increases in the variable input.
An increase in demand will cause a relatively small increase in price when:
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