Multiple Choice
Consumption is $6 million, planned investment spending is $7 million, government purchases are $10 million, and net exports are equal to $2 million. If GDP during that same time period is equal to $24 million, what unplanned changes in inventories occurred?
A) There was an unplanned decrease in inventories equal to $3 million.
B) There was no unplanned change in inventories.
C) There was an unplanned increase in inventories equal to $3 million.
D) There was an unplanned decrease in inventories equal to $19 million.
Correct Answer:

Verified
Correct Answer:
Verified
Q35: If the marginal propensity to consume is
Q39: Consumption spending will _ when disposable income
Q41: Refer to Figure 9.4 for the following
Q42: Using the following table, compute aggregate expenditure
Q43: Why do economists care about aggregate expenditure?<br>_<br>_
Q44: The larger the marginal propensity to save,
Q45: Given the following table, fill in the
Q76: What is the main reason for changes
Q217: Increases in the price level will<br>A)lower consumption
Q269: If the multiplier is 10,the marginal propensity