Multiple Choice
Use the following to answer questions .
Exhibit: Aggregate Expenditures (AE) in a Simplified Economy
-(Exhibit: Aggregate Expenditures (AE) in a Simplified Economy) Consider a simple economy that is made up of only two sectors, households and firms, and that investment is autonomous. Further, disposable personal income = real GDP. Suppose that actual real GDP in this economy is $300 billion in a particular period. We would expect to see
A) unintended reductions in inventory, planned investment will exceed actual investment.
B) unintended reductions in inventory, planned investment will be less than actual investment.
C) unintended increases in inventory, planned investment will exceed actual investment.
D) unintended increases in inventory, planned investment will be less than actual investment.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Using the aggregate expenditures model, which of
Q3: Holding all else constant, a change in
Q4: The amount of consumption that would take
Q5: An increase in the price level, all
Q6: Use the following to answer questions .<br>Exhibit:
Q7: The consumption function shows<br>A) the amount of
Q8: Consider a simple economy that is made
Q9: An increase in wealth is likely to
Q10: In the aggregate expenditures model, in equilibrium,<br>A)
Q11: In the aggregate expenditures model, in equilibrium,<br>A)