Solved

-The Figure Shows Tropical Isle's Aggregate Planned Expenditure Curve

Question 135

Multiple Choice

-The figure shows Tropical Isle's aggregate planned expenditure curve. When aggregate planned expenditure is $4 trillion, aggregate planned expenditure is ________ than real GDP, firms' inventories ________, and firms ________ their production. A) greater; increase; decrease B) less; decrease; increase C) greater; decrease; increase D) less; increase; decrease
-The figure shows Tropical Isle's aggregate planned expenditure curve. When aggregate planned expenditure is $4 trillion, aggregate planned expenditure is ________ than real GDP, firms' inventories ________, and firms ________ their production.


A) greater; increase; decrease
B) less; decrease; increase
C) greater; decrease; increase
D) less; increase; decrease

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q130: Suppose that firms find that their inventories

Q131: If the marginal propensity to import increases,

Q132: Because of the multiplier, a one-time change

Q133: The slope of the aggregate expenditure curve

Q134: The multiplier is 2.5 and the SAS

Q136: In general, the steeper the aggregate expenditure

Q137: In the short run, an upward shift

Q138: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above

Q139: _ consumption expenditure is greater than disposable

Q140: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -Using the data