All of the following are true when there is an unplanned decrease in inventories, except: O a. Actual investment is greater than planned investment O b. Real GDP will be rising O c. GDP is less than aggregate expenditures O d. Saving is less than planned investment

Suppose the marginal propensity to consume in an economy is 0.60. If the disposable income in this economy changes by $50 billion, consumption changes by $ billion 50 40 20 30 O O O O

Suppose the level of potential GDP is $6,000 billion, but the equilibrium level of GDP is $7,500 billion. If the marginal propensity to consume is 0.67, how much should government spending be decreased to eliminate the inflationary gap? O $250 billion $1500 billion O $500 billion O $125 billion

ADVANCED ANALYSIS  Assume that the consumption schedule for a private closed economy is such that consumption is:   C = 100 + 0.75Y     Assume further that planned investment Ig is independent of the level of real GDP and constant at Ig = 50. Recall also that, in equilibrium, the real output produced (Y) is equal to aggregate expenditures:   Y = C + Ig      Instructions: Enter your answers as whole numbers.a. Calculate the equilibrium level of income or real GDP for this economy.        Equilibrium GDP (Y) = $  . b. What happens to equilibrium GDP if Ig changes to 60?        Equilibrium GDP (Y)  = $  .        What does this outcome reveal about the size of the spending multiplier?        Spending multiplier =  .