Refer to the above figure. At real GDP of $3 trillion, actual investment equals
A. planned investment of $0.5 trillion.
B. unanticipated inventory adjustments of $0.5 trillion.
C. actual saving of $1 trillion.
D. planned saving of $1 trillion.
Answer: B
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If the quantity of goods and services produced in an economy decreases,
A) it may be possible for nominal GDP to increase. B) real GDP will certainly increase. C) nominal GDP will certainly decrease. D) it may be possible for real GDP to increase.
The total amount of consumer surplus in a market is equal to the area below the market demand curve and above the market price
Indicate whether the statement is true or false
If the U.S. inflation rate is 3 percent annually and the Swiss inflation rate is 5 percent annually, by what percent would the dollar price of francs need to change according to purchasing power parity?
a. Depreciate by 5 percent b. Appreciate by 3 percent c. Appreciate by 5 percent d. Depreciate by 2 percent e. Appreciate by 2 percent
Suppose that real domestic output in an economy is 2400 units, the quantity of inputs is 60, and the price of each input is $30. If productivity increased such that 3000 units are now produced with the quantity of inputs still equal to 60, then per-unit production costs would:
A. decrease and aggregate supply would increase. B. increase and aggregate supply would decrease. C. remain unchanged and aggregate supply would remain unchanged. D. decrease and aggregate supply would decrease.