n the above table, at the $410 billion real domestic output (RGDP) level, which of the following would not occur? Select one: a. Real domestic output and aggregate expenditure would grow until they reach an equilibrium. b. Businesses would produce less c. Aggregate expenditure exceeds RGDP d. Inventories would decrease unplanned way
n the above table, at the $410 billion real domestic output (RGDP) level, which of the following would not occur? Select one: a. Real domestic output and aggregate expenditure would grow until they reach an equilibrium. b. Businesses would produce less c. Aggregate expenditure exceeds RGDP d. Inventories would decrease unplanned way
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
In the above table, at the $410 billion real domestic output (RGDP) level, which of the following would not occur?
Select one:
a. Real domestic output and aggregate expenditure would grow until they reach an equilibrium.
b. Businesses would produce less
c. Aggregate expenditure exceeds RGDP
d. Inventories would decrease unplanned way
Transcribed Image Text:(1)
Possible
(2)
Real Domestic
()
Consumption
(C).
Billions
(6)
Aggregate
Expenditures
(C + .
(7)
Unplanned
Changes in
Inventories,
(+ or -)
(8)
Tendency of
Employment,
Output, and
Income
(5)
Output (and
Employment, Income) (GDP -
DI), Billions
Levels of
()
Investment
Saving (5).
Balions
Millions
Blons
Billions
(1) 40
(2) 45
$370
$375
S-5
$20
$395
S-25
Increase
90
390
20
410
-20
Increase
() 50
410
405
20
425
-15
Increase
() 55
400
420
10
20
440
-10
Increase
(5) 60
450
435
IS
20
455
-5
Increase
470
450
20
20
470
Equilibrium
) 70
490
465
25
20
485
+5
Decrease
(8) 75
510
480
30
20
500
+10
Decrease
530
495
35
20
SIS
+15
Decrease
(10) 85
550
SI0
20
530
+20
Decrease
depreciation and ner foregn factor income are ergovemmentisored and saumed thar all saving occurs in the household sector of the economy then GDPas
of domestic output sequal to NPand DI. This means that households receive a Di equal to the vale of toal ouput
mea
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