1.3 If real gross domestic product is R350 billion and planned aggregate expenditure is R275 billion,...
1.3 If real gross domestic product is R350 billion and planned aggregate expenditure is R275 billion, then inventories will: a) pile up and output will decrease. b) pile up and output will increase. c) be depleted and output will decrease. d) be depleted and output will increase. e) stay constant, as will output.
Homework Answers
Answer is option a). Inventory will pile up and output will decrease.
Explanation: Graph below explains GDP and aggregate expenditure relationship. The point E shows the equilibrium point when Aggregate expenditure = GdP. Since the Gdp > aggregate expenditure, therefore point A lies on the right of the 45° line. Here, inventories are in excess as shown in figure so they will pile up and now according to aggregate expenditure framework output will decrease to reach to equilibrium gdp.
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1.3 If real gross domestic product is R350 billion and planned
aggregate expenditure is R275 billion,...
Table 27.3.1 The following table shows the relationship between aggregate planned expenditure and real GDP in...
Table 27.3.1 The following table shows the relationship between aggregate planned expenditure and real GDP in the hypothetical economy of Econoworld. Real GDP (billions of 2007 dollars) Aggregate planned expenditure (billions of 2007 dollars) 100 260 420 580 740 200 400 600 800 18) Refer to Table 27.3.1. If investment increases by $25 billion, the real GDP becomes A) $525 billion. B) $625 billion. C) $725 billion D) $600 billion. E) $675 billion.
The following table shows the relationship between aggregate planned expenditure and real GOP in the hypothetical...
The following table shows the relationship between aggregate planned expenditure and real GOP in the hypothetical economy of Econoworld Real GDP bbons of 2007 dollars) Aggregate planned expenditure (billions of 2007 dollars) 100 200 300 420 1131 The level GPS 580 740 Ол ееn O Canadians' Wealth Rises Canadian net saving in the first quarter of 2017 was 522 billion Holdings of financial assets increased by 5162 bilion and the value of shares in corporations increased by $113 billion Explain...
Draw a planned aggregate expenditure curve for an economy where autonomous expenditure is $200 billion and...
Draw a planned aggregate expenditure curve for an economy where autonomous expenditure is $200 billion and the marginal propensity to consume is equal to 0.50. Plot values for Actual Aggregate Expenditure' of $100, $200, $300, $400, $500, and $600. Instructions: Use the graphing tool to draw the planned aggregate expenditure curve by plotting points at each level of output (Y) starting with zero and ending with 500. Planned Aggregate Expenditure (PAE, billions of dollars) PAE = Y 500 Tools 450...
Which of the following best describes the relationship between aggregate expenditure and real GDP? O A....
Which of the following best describes the relationship between aggregate expenditure and real GDP? O A. If aggregate expenditure falls short of real GDP, inventories will accumulate and real GDP and aggregate income will fall in future. O B. If aggregate expenditure falls short of real GDP, inventories will decrease and real GDP and aggregate income will fall in future. O c. If aggregate expenditure falls short of real GDP, inventories will accumulate and real GDP and aggregate income will...
decrease in personal taxes from $100 billion to 580 billion will increase real GDP 11. If...
decrease in personal taxes from $100 billion to 580 billion will increase real GDP 11. If the MPC -0.75, a decrease in person by A) $20 billion. B) $40 billion. C) $60 billion. D) $80 billion. Table 10.1 Consumption C - $1.0+ 0.80YD Investment $1.5 Government purchases $2.2 Net exports Taxes Government transfer payments $0 (all values are in billions of dollars) 2, 12. Refer to Table 10.1. Equilibrium real GDP for this economy is equal to A) $5.75 billion....
At point a in the graph to the right, planned aggregate expenditure is At point A...
At point a in the graph to the right, planned aggregate
expenditure is
At point A in the graph to the right planned aggregate expenditure is GDP. At point B, planned aggregate expenditure is GDP. At point, planned aggregate expenditure is GDP. At point A, the unintended change in inventories can be shown on the graph by: Real aggregate expenditure, AE O A. the horizontal distance between point A and point B. OB. the vertical distance between point A and...
If aggregate output exceeds planned aggregate expenditure, O A. unplanned inventory increases have occurred and firms...
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provide an explanation with a steps of the answer for each question please 1,600 Planned aggregate expenditure, AE...
provide an explanation with a steps of the answer for each
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1,600 Planned aggregate expenditure, AE (billions of dollars) OS 1,600 Aggregate output, Y billions of dollars) Figure 24.5 1) Refer to Figure 24.5. If the economy is in equilibrium and the government decreases spending by $200 billion, equilibrium aggregate output decreases to S billion. A) 1,400 B) 1,200 C) 1,000 D) 800 2) Refer to Figure 24.5. If the economy is in equilibrium and the government increases...
a. decrease b. increase c. constant Check my answer for me..pls $10,000 $8,000 Aggregate expenditure $6,000...
a.
decrease
b. increase
c. constant
Check my answer for me..pls
$10,000 $8,000 Aggregate expenditure $6,000 Aggregate Expenditure $4,000 $2,000 SO $0 $8,000 $10,000 $2,000 $4,000 $6,000 Real GDP (Y) 1. The premise of the Keynesian aggregate expenditure model is that the amount of goods and services produced, and therefore the level of employment, depends directly on the level of total expenditures. Refer to the above graph and answer the following questions: a. For the GDP level of $5000, GDP...
Aggo Gross Domestic Product for the First Quarter of 2017 The increase in real GDP in...
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Table 27.3.1 The following table shows the relationship between aggregate planned expenditure and real GDP in the hypothetical economy of Econoworld. Real GDP (billions of 2007 dollars) Aggregate planned expenditure (billions of 2007 dollars) 100 260 420 580 740 200 400 600 800 18) Refer to Table 27.3.1. If investment increases by $25 billion, the real GDP becomes A) $525 billion. B) $625 billion. C) $725 billion D) $600 billion. E) $675 billion.
The following table shows the relationship between aggregate planned expenditure and real GOP in the hypothetical economy of Econoworld Real GDP bbons of 2007 dollars) Aggregate planned expenditure (billions of 2007 dollars) 100 200 300 420 1131 The level GPS 580 740 Ол ееn O Canadians' Wealth Rises Canadian net saving in the first quarter of 2017 was 522 billion Holdings of financial assets increased by 5162 bilion and the value of shares in corporations increased by $113 billion Explain...
Draw a planned aggregate expenditure curve for an economy where autonomous expenditure is $200 billion and the marginal propensity to consume is equal to 0.50. Plot values for Actual Aggregate Expenditure' of $100, $200, $300, $400, $500, and $600. Instructions: Use the graphing tool to draw the planned aggregate expenditure curve by plotting points at each level of output (Y) starting with zero and ending with 500. Planned Aggregate Expenditure (PAE, billions of dollars) PAE = Y 500 Tools 450...
Which of the following best describes the relationship between aggregate expenditure and real GDP? O A. If aggregate expenditure falls short of real GDP, inventories will accumulate and real GDP and aggregate income will fall in future. O B. If aggregate expenditure falls short of real GDP, inventories will decrease and real GDP and aggregate income will fall in future. O c. If aggregate expenditure falls short of real GDP, inventories will accumulate and real GDP and aggregate income will...
decrease in personal taxes from $100 billion to 580 billion will increase real GDP 11. If the MPC -0.75, a decrease in person by A) $20 billion. B) $40 billion. C) $60 billion. D) $80 billion. Table 10.1 Consumption C - $1.0+ 0.80YD Investment $1.5 Government purchases $2.2 Net exports Taxes Government transfer payments $0 (all values are in billions of dollars) 2, 12. Refer to Table 10.1. Equilibrium real GDP for this economy is equal to A) $5.75 billion....
At point a in the graph to the right, planned aggregate
expenditure is
At point A in the graph to the right planned aggregate expenditure is GDP. At point B, planned aggregate expenditure is GDP. At point, planned aggregate expenditure is GDP. At point A, the unintended change in inventories can be shown on the graph by: Real aggregate expenditure, AE O A. the horizontal distance between point A and point B. OB. the vertical distance between point A and...
If aggregate output exceeds planned aggregate expenditure, O A. unplanned inventory increases have occurred and firms will increase output. O B. unplanned inventory reductions have occurred and firms will increase output. O c. unplanned inventory increases have occurred and firms will decrease output. O D. unplanned inventory reductions have occurred and firms will decrease output.
provide an explanation with a steps of the answer for each
question please
1,600 Planned aggregate expenditure, AE (billions of dollars) OS 1,600 Aggregate output, Y billions of dollars) Figure 24.5 1) Refer to Figure 24.5. If the economy is in equilibrium and the government decreases spending by $200 billion, equilibrium aggregate output decreases to S billion. A) 1,400 B) 1,200 C) 1,000 D) 800 2) Refer to Figure 24.5. If the economy is in equilibrium and the government increases...
a.
decrease
b. increase
c. constant
Check my answer for me..pls
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Aggo Gross Domestic Product for the First Quarter of 2017 The increase in real GDP in the first quarter of 2017 primarily reflected increases in personal consumption expenditure (+1.1 % ), exports (-0.1 % ) , and investment (+29 % ). Imports of goods and services increased by 3.3 % Source Statistics Canada, May 31, 2017 M #6- Explain how the tems in the news clp influence Canada's aggregate demand The increase in the personal consumption expenditures aggregate demand. The...
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