Homework Answers
Equilibrium GDP = $6,000
(a)
When GDP is $5,000, aggregate expenditure is higher than GDP, so firms have to sell from their inventory. So inventory will decrease and firms will increase production.
(b)
When GDP is $9,000, aggregate expenditure is lower than GDP, so firms will accumulate unplanned inventory. So inventory will increase and firms will decrease production.
(c)
When GDP is $6,000, aggregate expenditure is equal to GDP. So inventory will remain constant and firms will keep production constant.
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a.
decrease
b. increase
c. constant
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$10,000 $8,000 Aggregate expenditure $6,000...
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5. In the Keynesian model which of the following would be most likely to have the largest impact on aggregate demand a. an increase in the money supply b. a change in government expenditure c. a chan...
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please help me to answer 1.5 - 1.9 thansk 's at purch Model, pages 772-775 ow macroeconomic equilibrium is de...
please help me to answer 1.5 - 1.9 thansk
's at purch Model, pages 772-775 ow macroeconomic equilibrium is determined in the aggregate re by local and Comment pe or local from an online site in Secure bases 250 new . cornment purch Security pay ments by locale finefighters. The th at the price level in sells $1 billion of computer chips to computers. How does e levels in other ca States relative to and the exchange t of spending...
answer every single picture QUESTION 5 Suppose James transfers $500 from his checking account to...
answer every single picture
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QUESTION 18 Suppose the equation of an economy's Aggregate Planned Expenditure function is AE - 75y + 800. What is the value of the equilibrium level of real GDP (denoted Y*)? Y* = [X] QUESTION 19 Suppose the equation of an economy's Aggregate Planned Expenditure function is AE - 75y + 800. If real GDP - $1000, unplanned inventory investment will be $. so firms will have incentive to output next period.
c. For each level of actual aggregate expenditure, calculate unplanned inventory investment. Instructions: Enter numerical values into the table. Enter whole numbers only. If the value is negative, you must enter a minus sign. d. What is the equilibrium level of aggregate expenditure in this economy? Instructions: Enter a numerical value rounded to two decimal places as necessary. e. For each level of actual aggregate expenditure, label the future output tendency as "increase," "decrease," or "same" based on what you...
5. In the Keynesian model which of the following would be most likely to have the largest impact on aggregate demand a. an increase in the money supply b. a change in government expenditure c. a change in investment expectations d. both a and c e. both b and c 6. In the Keynesian theory of liquidity demand and the interest rate which of the following occurs during excess supply of money. a. individuals sell bonds, driving interest rates down...
Please answer these macro multiple choices
Which of the following is a defining characteristic of the AD/AS macro model in the short run? O A. firms cannot operate near their normal capacity O B. technology used in production is endogenous and variable O C. factor supplies are assumed to be constant OD. the level of potential output fluctuates with the price level O E. factor prices are assumed to be constant Assume the economy is initially in equilibrium with desired...
THERE ARE 20 total QUESTIONS PLEASE ANSWER ALL OF THEM
QUESTION 1 One way to reduce the recessionary gap through fiscal policy is to O increase government purchases. increase taxes. O decrease transfer payments. decrease the MPC QUESTION 2 Which of the following is true of open-market operations? It involves the purchase and sale of government securities by the central bank. O it involves the purchase and sale of stocks and bonds by private banks. It involves measures taken by...
please help me to answer 1.5 - 1.9 thansk
's at purch Model, pages 772-775 ow macroeconomic equilibrium is determined in the aggregate re by local and Comment pe or local from an online site in Secure bases 250 new . cornment purch Security pay ments by locale finefighters. The th at the price level in sells $1 billion of computer chips to computers. How does e levels in other ca States relative to and the exchange t of spending...
answer every single picture
QUESTION 5 Suppose James transfers $500 from his checking account to his savings account. As a result of this action, OM1 stays the same and M2 falls. M1 falls and M2 stays the same. OBoth M1 and M2 fall. OBoth M1 and M2 stay the same. We were unable to transcribe this image1 poi QUESTION 7 Suppose the required reserve ratio is 25%. Assuming that banks hold no excess reserves and consumers hold no cash, this...
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