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Exhibit 9-2 -We Can Tell from the Data in Exhibit 9-2 That

Question 4

Multiple Choice

Exhibit 9-2
 Income = output  (Y)  C Planned  investment  Aggregate  expenditure  Unintended  inventory  adjustment  Actual  investment $1,200$1,240$200$1,440$240$401,4001,3802001,580180201,6001,5202001,720120801,8001,6602001,860601402,0001,8002002,00002002,2001,9402002,140602602,4002,0802002,280120320\begin{array} { c c c c c c } \begin{array} { c } \text { Income } = \\\text { output } \\\text { (Y) }\end{array} & \mathrm { C } & \begin{array} { c } \text { Planned } \\\text { investment }\end{array} & \begin{array} { c } \text { Aggregate } \\\text { expenditure }\end{array} & \begin{array} { c } \text { Unintended } \\\text { inventory } \\\text { adjustment }\end{array} & \begin{array} { c } \text { Actual } \\\text { investment }\end{array} \\\hline \$ 1,200 & \$ 1,240 & \$ 200 & \$ 1,440 & - \$ 240 & - \$ 40 \\1,400 & 1,380 & 200 & 1,580 & - 180 & - 20 \\1,600 & 1,520 & 200 & 1,720 & - 120 & 80 \\1,800 & 1,660 & 200 & 1,860 & - 60 & 140 \\2,000 & 1,800 & 200 & 2,000 & 0 & 200 \\2,200 & 1,940 & 200 & 2,140 & 60 & 260 \\2,400 & 2,080 & 200 & 2,280 & 120 & 320\end{array}
-We can tell from the data in Exhibit 9-2 that planned investment is autonomous because


A) actual investment is constant at each level of income
B) it does not vary as consumption changes
C) it does not vary as income changes
D) it does not vary as the actual investment changes
E) it does not vary as the price level changes

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