-The Table Above Gives Data for the Nation of Mosh
Question 12
Question 12
Multiple Choice
Consumption Real GDP, Y (trillions of 2005 dollars) 012345678910 Government (trillions of 2005 dollars) 1.001.752.503.254.004.755.506.257.007.758.50 Investment, I (trillions of 2005 dollars) 22222222222 expenditure, G (trillions of 2005 dollars) 11111111111 Exports, X (trillions of 2005 dollars) 11111111111 Imports, M (trillions of 2005 dollars) 0.500.751.001.251.501.752.002.252.502.753.00 -The table above gives data for the nation of Mosh.If real GDP is $6 trillion, then
A) firms decrease production because inventories exceed their target levels. B) firms increase production because inventories are less than their target levels. C) the economy has reached equilibrium and no change in production will occur. D) firms increase production because inventories exceed their target levels. E) we need more information to determine whether firms increase, decrease, or do not change their production.
Correct Answer:
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