Question : 21) Equilibrium expenditure occurs when A) aggregate planned expenditure equals real : 1238149

21) Equilibrium expenditure occurs when

A) aggregate planned expenditure equals real GDP.

B) disposable income equals real GDP.

C) disposable income equals consumption expenditures plus imports.

D) real GDP plus net taxes equals disposable income.

E) real GDP minus net taxes equals disposable income.

22) Equilibrium expenditure is the level of aggregate expenditure at which

A) aggregate production equals real GDP.

B) aggregate actual expenditure equals real GDP.

C) aggregate planned expenditure equals real GDP.

D) aggregate private expenditure equals real GDP.

E) planned inventory investment equals zero.

23) Equilibrium expenditure is

A) the amount of aggregate expenditure at which aggregate planned expenditure equals real GDP.

B) when unplanned inventory change is positive.

C) the amount of aggregate expenditure at which aggregate planned expenditure exceeds real GDP.

D) the amount of aggregate expenditure at which aggregate planned expenditure is less than real GDP.

E) when unplanned inventory change is zero or negative.

24) The equilibrium level of aggregate planned expenditure is found where

A) there is no saving and no dissaving.

B) aggregate planned expenditure equals real GDP.

C) net exports is zero.

D) autonomous expenditure equals equilibrium expenditure.

E) the price level is rising at a constant rate.

25) If aggregate planned expenditure equals GDP, then

A) firms’ inventories exceed planned inventories.

B) firms’ inventories are less than planned inventories.

C) firms’ inventories equal planned inventories.

D) firms do not have any inventories.

E) firms’ actual investment has no relationship to their planned investment.

26) If aggregate planned expenditure equals GDP, then

A) there must be no change in firms’ inventories.

B) the change in firms’ inventories must be positive.

C) the change in firms’ inventories must be equal to the planned change.

D) the change in firms’ inventories must be negative.

E) actual aggregate expenditure might be greater than, equal to, or less than real GDP.

27) If actual aggregate expenditure equals aggregate planned expenditure, then

A) there is never any change in firms’ inventories.

B) unplanned inventory changes are positive.

C) firms obtain the desired change in their inventories.

D) unplanned inventory changes are negative.

E) actual aggregate expenditure might be greater than, equal to, or less than real GDP.

28) If aggregate planned expenditures equal 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 decrease below their planned levels and businesses decrease their production.

E) unplanned inventory changes equal zero.

29) In the aggregate expenditure (AE) model, the economy is driven to its equilibrium by changes in

A) government expenditures on goods and services that are the result of changes in real GDP.

B) induced expenditures that are the result of changes in real GDP.

C) investment that are the result of changes in real GDP.

D) autonomous expenditures that are the result of changes in real GDP.

E) net taxes that are the result of changes in real GDP.

30) Unplanned inventories increase when

A) real GDP is less than aggregate planned expenditure.

B) actual aggregate expenditure is greater than aggregate planned expenditure.

C) actual aggregate expenditure is equal to GDP.

D) aggregate planned expenditure is less than GDP.

E) actual aggregate expenditure is less than GDP.