Question : 41) If aggregate planned expenditures less than real GDP, then A) : 1240560

 

41) If aggregate planned expenditures are less than real GDP, then

A) inventories increase above their planned levels and businesses decrease their production.

B) inventories decrease below their planned levels and businesses increase their production.

C) there is no equilibrium level of real GDP.

D) inventories increase above their planned levels and businesses increase their production.

E) unplanned inventory changes equal zero.

 

42) When real GDP exceeds aggregate planned expenditure

A) firms increase production.

B) real GDP increases.

C) an unplanned decrease in inventories occurs.

D) an unplanned increase in inventories occurs.

E) real GDP remains at its equilibrium.

 

43) When GDP = $2.5 trillion, C = $1.0 trillion, I = $0.6 trillion, G = $0.4 trillion, and NX = $0. Then

A) unplanned inventory change = $0.5 trillion.

B) aggregate planned expenditure = $2.5 trillion.

C) aggregate planned expenditure = $1.6 trillion.

D) unplanned inventory change = -$0.5 trillion.

E) equilibrium expenditure = $2.0 trillion.

 

44) Which of the following situations leads to an unplanned increase in inventories of $2.0 trillion?

A) real GDP = $5.0 trillion and aggregate planned expenditures = $7.0 trillion

B) real GDP = $5.0 trillion and aggregate planned expenditures = $5.0 trillion

C) real GDP = $6.0 trillion and aggregate planned expenditures = $4.0 trillion

D) real GDP = $8.0 trillion and aggregate planned expenditures = $5.0 trillion

E) More information is needed about planned investment and actual investment.

45) Points where the aggregate expenditure (AE) curve lie above the 45° line are points where aggregate planned expenditure is

A) greater than real GDP.

B) less than real GDP.

C) equal to real GDP.

D) the inverse of real GDP.

E) not related to real GDP.

 

46) If aggregate planned expenditure is greater than GDP, then

A) inventory investment is smaller than planned.

B) inventory investment is larger than planned.

C) production is too high.

D) a recession will result.

E) the consumption function will shift downward to restore the equilibrium.

 

47) When aggregate planned expenditure exceeds real GDP,

A) firms decrease production.

B) real GDP decreases.

C) an unplanned decrease in inventories occurs.

D) an unplanned increase in inventories occurs.

E) real GDP remains at its equilibrium level.

48) If aggregate planned expenditure exceeds real GDP, then

A) unplanned inventory changes are positive.

B) unplanned inventory changes are negative.

C) aggregate planned expenditure must decrease to restore the equilibrium.

D) real GDP will decrease.

E) planned inventory changes must be negative.

 

49) When the AE line lies above the 45° line,

A) there are unplanned decreases in inventories.

B) aggregate planned expenditure is less than real GDP.

C) there are unplanned increases in inventories.

D) real GDP exceeds aggregate planned expenditure.

E) the price level is rising.

 

50) When aggregate planned expenditure exceeds real GDP, there are unplanned ________ in inventories, and firms ________ production, so that real GDP ________.

A) decreases; decrease; increases

B) increases; decrease; decreases

C) increases; increase; increases

D) decreases; increase; increases

E) decreases; decrease; decreases

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more