81) In the figure above, if real GDP is $12 trillion, aggregate planned expenditure is ________ $12 trillion and unplanned inventory changes are ________.
A) less than; positive
B) equal to; equals to zero
C) less than; negative
D) equal to; negative
E) equal to; positive
82) In the figure above, if real GDP is $6 trillion, aggregate planned expenditure is
A) less than $6 trillion and unplanned inventory changes are positive.
B) equal to $6 trillion and there are no unplanned inventory changes.
C) more than $6 trillion and unplanned inventory changes are negative.
D) equal to $6 trillion and unplanned inventory changes are negative.
E) equal to $6 trillion and unplanned inventory changes are positive.
83) In the above figure, equilibrium expenditure is equal to
A) $5 trillion.
B) $6 trillion.
C) $9 trillion.
D) $3 trillion.
E) $4 trillion.
84) If exports increase, then the aggregate expenditure curve shifts ________ and equilibrium expenditure ________.
A) upward; decreases
B) upward; increases
C) downward; decreases
D) downward; increases
E) upward; does not change
85) If autonomous imports increase, then the aggregate expenditure curve shifts ________ and equilibrium real GDP ________.
A) upward; decreases
B) upward; increases
C) downward; decreases
D) downward; increases
E) downward; does not change
86) According to John Maynard Keynes,
A) Say's Law is always correct.
B) a free market economy automatically finds equilibrium at full employment.
C) prices and wages move up and down freely.
D) effective demand determines real GDP.
E) supply creates its own demand.
87) When aggregate planned expenditure exceeds real GDP, there is
A) a planned decrease in inventories.
B) a planned increase in inventories.
C) an unplanned decrease in inventories.
D) an unplanned increase in inventories.
E) an unplanned decrease in the price level.
88) If aggregate planned expenditure is greater than real GDP,
A) an unplanned decrease in inventories leads to an increase in production.
B) an unplanned increase in inventories leads to a decrease in production.
C) a planned decrease in inventories leads to an decrease in production.
D) a planned increase in inventories leads to an increase in production.
E) an unplanned decrease in inventories leads to an increase in the price level.
89) If real GDP equals aggregate planned expenditure, then inventories
A) rise above their target levels.
B) fall below their target levels.
C) equal their target levels.
D) are either above or below their target levels depending on whether planned inventories are above or below their target levels.
E) None of the above answers is necessarily correct because there is no relationship between inventories and aggregate planned expenditure.
90) Equilibrium expenditure is the level of expenditure at which
A) firms' inventories are zero.
B) firms' inventories are at the desired level.
C) firms produce more output than they sell.
D) aggregate planned expenditure minus planned changes in inventories equals real GDP.
E) aggregate planned expenditure plus planned changes in inventories equals real GDP.
