If unplanned inventory investment is positive, then Select one: O a. planned aggregate expenditure must be greater than aggregate output O b. None of the options c. planned aggregate expenditure must equal aggregate output O d. planned aggregate expenditure must be less than aggregate output

Q: ed The figure shows planned aggregate expenditure and output for an economy. PAE=Y Planned Aggregate…

A:

Q: The difference between planned aggregate expenditure (PAE) and actual output (Y) is: O the…

A: When Y > PAE, actual inventory is higher than planned inventory, so there is a positive unplanned…

Q: Consider the following time series representing % deviations from trend for Investment (black) and…

A: Given the graph shows the deviation in percentage on the verticle axis and the number of years on…

Q: In 2016 final sales equal $40o billion, and the change in business inventories is $100 billion. GDP…

A: Information given is:- Final sales = $400 billion Change in business inventory = $100 billion

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A: The income expenditure model shows the relationship between income and expenditure in an economy. It…

Q: In 2007 the change in business inventories is -$30 billion and GDP is $160 billion. Final sales in…

A: Given information: In 2007, the change in business inventories is -$30 billion and GDP is $160…

Q: Question 5 If the government wants to reduce unemployment using fiscal policy, it may do so by…

A: "Since you have asked multiple questions, we will solve the first one for you. If you want any…

Q: The most important determinant of consumption and saving is the A. price level. B. level of income.…

A: "Consumers or buyers in economics demand commodities and services and they meet their consumption…

Q: (Figure: Market for Engines) According to the figure, if there is international trade in this…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: The cconsumption function is the relationship between consumption expenditure and other things…

A: The detail answer of this question is provided in step 2

Q: According to the figure at right, autonomous consumption equals O A. $5,000. OB. $0. OC. -$5,000.…

A: Detailed explanation: Let's analyze the graph and determine the value of autonomous consumption. The…

Q: Real GDP is $16 trillion and aggregate planned expenditure is $17 trillion. As a result, unplanned…

A: Real GDP is the value of final goods and services produced in the economy within a given period of…

Q: A decrease in people's disposable income OA. increases investment demand. B. increases consumption.…

A: The consumption function is the mathematical expression that denotes the direct relationship between…

Q: Aggregate planned expenditure decreases if O a. investment increases. O b. real GDP decreases. O c.…

A: Aggregate planned expenditure is computed as:

Q: Employment is O A. more variable than real GDP. OB. acyclical. O C. about as variable as real…

A: A variable is a symbolic representation of a quantity or characteristic that can vary or change in…

Q: $500 400 300 200 100 $100 300 200 Real GDP 400 -C+lg 500 Refer to the diagram for a private closed…

A: A private closed economy refers to an economic system in which all economic activities occur within…

Q: If consumption is 10 and 15 and investment is 5 and 20, then the curves of both variables will be_ O…

A: Consumption is use of goods and services by the households and individuals. Consumption spending is…

Q: In the aggregate expenditure model, the assumption of a constant price level implies that OA. the…

A: In the aggregate expenditure model, four components of aggregate expenditure that together equal GDP…

Q: Over the business cycle, O A. only real GDP fluctuates around its trend and potential GDP remains…

A: The business cycle model shows how a country's real GDP changes over some time, going through stages…

Q: 1. In using the expenditure approach to GDP, consumption.... 2.The long -run aggregate supply curve…

A: Since you have posted a question with multiple parts, we will solve only the first part. To get…

Q: o inventories change when aggregate planned expenditure is less than Peal GDP? regate planned…

A: Inventories are the unplanned investment. Firms plans to investment, but if actual investment is…

Q: a.) How will COVID impact China’s GDP and consumption? b.) How did COVID affect manufacturing…

A: Consumption is the method in which people buy and use goods and services for themselves.

Q: Consumption Refer to Figure 10-3. Marginal propensity to consume is equal to a. CoF divided by AF.…

A: A rise in income that is primarily allocated to consumption is known as the marginal propensity to…

Q: QUESTION 8 Consumption 0 45° H CB+AB. CD+CF. A E Income C B F Consumption Refer to the given…

A: MPC is the marginal propensity to consume.  MPC is calculated as the change in consumption divided…

Q: In the income-expenditure model, if autonomous investment decreases by $10 billion, a. planned…

A: The relationship between income and expenditure in an economy is depicted by the income expenditure…

Q: Which of the following is correct? O D. When MP is rising MC is O B. When AP is rising MC is…

A: Marginal Cost: The marginal cost refers to the cost by which the total cost increases due to the…

Q: In an intertemporal model of consumption behaviour, a lower real interest rate means a budget line O…

A: Budget line shows the combination of two goods that can be purchased with given market price and…

Q: .Refer to the information provided in Figure 8.4 below to answer the questions that follow C3 45° Y2…

A: In the Keynesian macroeconomics model, the aggregate demand determines the output level(real GDP)…

Q: GDP Aggregate expenditure AE, E, 45° Y. Real GDP (Y) Aggregate Expenditure

A: Equilibrium in the economy occurs at the intersection point of AE (i.e., aggregate expenditure) and…

Q: The consumption schedule for a country is shown on the diagram below. Suppose there is an upcoming…

A: The term GDP represents gross domestic product. The total monetary or market value of all finished…

Q: ed The figure shows planned aggregate expenditure and output for an economy. PAE=Y Planned Aggregate…

A: The objective of the question is to identify the change that would cause a move from a higher level…

Q: Potential GDP Aggregate expenditure AE, E, 45° Y. Real GDP (Y) On the 45 degrees line: GDP is equal…

A: We have 45° line for GDP and aggregate expenditure.

Q: Refer to the above figure Autonomous consumption is OA only a point A OB to the night of point B OC…

A: Aggregate expenditure describes the total amount of spending in the economy through consumption,…

Q: The slope of the aggregate expenditure curve equals the change in * O Planned expenditure divided by…

A: Macroeconomics studies aggregate economic concepts such as income, employment, inflation, business…

Q: Consumption Investment 300 250 200 150 100 50 45⁰ 50 100 150 200 250 300, CAE Real GDP The graph…

A: Given information: We have given a simple economy without a government sector or a foreign sector In…

Q: Answer any 2 from a, b, and c below a. Why does AD slope downward? b. Which is the one example…

A: Aggregate demand is an important component in determining the functions of the economy, it is the…

Q: Value of Marginal Propensity to Consume lies between a. None b. Negative one and Positive one O c.…

A: