If unplanned inventory changes are positive, what is the relationship between aggregate planned expenditure and real GDP?
What will be an ideal response?
If unplanned inventory changes are positive, firms are not selling all the goods and services they had produced. In this case, aggregate planned expenditure is less than real GDP.
You might also like to view...
If the nominal interest rate equals 10 percent and the inflation rate equals 6 percent, what does the real interest rate equal?
What will be an ideal response?
In the above figure, the competitive wage rate is ________ and the quantity of labor is ________
A) $7.00; 150 hours B) $8.00; 200 hours C) $6.00; 100 hours D) $8.00; 100 hours
If a 10 percent decrease in the price of one good generates a 3 percent increase in the quantity demanded for another good, then the
a. two goods are complementary b. cross elasticity between the two goods is positive c. two goods are substitutes d. price elasticity of demand for the good whose quantity demanded increased must be inelastic e. price elasticity of demand for the good whose quantity demanded increased must be elastic
The questions below are based on the table below. Fill in the blank spaces first. 
How many will be employed if the labor market is perfect with a going wage of $18 and the product market is imperfect?
What will be an ideal response?