QUESTION 6PotentialGDPAggregateexpenditureAE,45°Y.Real GDP (Y)When real GDP is greater than Yo in the diagram above:O A.- inventories will decreaseOB.·Aggregate expenditure will be less than Real GDPOC.Aggregate expenditure will be equal to Real GDPOD.O D. inventories will increaseQUESTION 7YGXn$1,000$1,4001,4001,4001,4001,400$0$800-$2002,5005,0007,50010,0002,3003,8005,3006,8001,0001,0001,0001,000-200-200-200-200Suppose you are given the data in the table above for a hypothetical economy. All data are in billions of dollars. Yis actual real GDP, and C, Ip, G, and Xn are the consumption, planned investment, government purchases, and net exports components of aggregateexpenditures, respectively.Calculate the equilibrium GDP (give your answer in billions of $)Aggregate Expenditure

Equilibrium is the point where aggregate expenditure equals income In goods market income must…

When real GDP is greater than Yo in the diagram above: O A Inventories will decrease OB. Aggregate expenditure will be less than Real GDP Aggregate expenditure will be equal to Real GDP OD. inventories will increase

When real GDP is greater than Yo in the diagram above: O A Inventories will decrease OB. Aggregate expenditure will be less than Real GDP Aggregate expenditure will be equal to Real GDP OD. inventories will increase

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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