Suppose you observed firms' inventory stocks drop by $100 billion. If you knew that aggregate expenditure was $3,000 billion, what would GDP be?
a. $3,000 billion
b. $2,000 billion
c. $2,900 billion
d. $1,000 billion
e. $3,100 billion
C
You might also like to view...
At the time it collapsed in 1991, the Soviet Union possessed all of the factors that promote increases in economic growth except:
A. a large stock of capital. B. abundant natural resources. C. a political and legal environment that promoted economic productivity. D. a highly educated worker force.
According to Keynes' fixed money wage theory, when the price level is higher than expected the real wage is ____ than expected and unemployment is ______ than expected
a. lower; lower b. higher, higher c. lower; higher d. higher; lower
Refer to Figure 8.1. At the profit-maximizing level of output, AVC is
A) $22. B) $26. C) $30. D) $32. E) $40.
Due to automatic stabilizers, when the nation's total income rises, government transfer spending:
A. Increases and tax revenues decrease B. Decreases and tax revenues increase C. And tax revenues decrease D. And tax revenues increase