Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 31.2, Problem 3QQ
To determine
Real GDP .
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When the economy is operating at the equilibrium level of? GDP, we know that
A.
total planned real consumption expenditures equal real GDP.
B.
total planned real expenditures equal real GDP.
C.
planned real investment spending equals real net exports of zero.
D.
real net exports equal inventory changes.
Answer in step by step with explanation.
Don't use Ai and chatgpt.
Answer in all options.
Hhhhhhh
Refer to the figure at right. The equilibrium level of real GDP will occur
A.
at point A.
B.
to the left of point A.
C.
to the right of point A.
D.
at the undetermined point on the graph depending upon the level of investment.
Chapter 31 Solutions
Economics (Irwin Economics)
Ch. 31.2 - Prob. 1QQCh. 31.2 - Prob. 2QQCh. 31.2 - Prob. 3QQCh. 31.2 - Prob. 4QQCh. 31.7 - Prob. 1QQCh. 31.7 - Prob. 2QQCh. 31.7 - Prob. 3QQCh. 31.7 - Prob. 4QQCh. 31 - Prob. 1DQCh. 31 - Prob. 2DQ
Ch. 31 - Prob. 3DQCh. 31 - Prob. 4DQCh. 31 - Prob. 5DQCh. 31 - Prob. 6DQCh. 31 - Prob. 7DQCh. 31 - Prob. 8DQCh. 31 - Prob. 1RQCh. 31 - Prob. 2RQCh. 31 - Prob. 3RQCh. 31 - Prob. 4RQCh. 31 - Prob. 5RQCh. 31 - Prob. 6RQCh. 31 - Prob. 7RQCh. 31 - Prob. 8RQCh. 31 - Prob. 9RQCh. 31 - Prob. 1PCh. 31 - Prob. 2PCh. 31 - Prob. 3PCh. 31 - Prob. 4PCh. 31 - Prob. 5PCh. 31 - Prob. 6PCh. 31 - Prob. 7PCh. 31 - Prob. 8PCh. 31 - Prob. 9PCh. 31 - Prob. 10P
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- In the income-expenditure model, if autonomous investment decreases by $10 billion, a. planned saving increases by $10 billion b. the aggregate expenditure line shifts downward by $10 billion c. planned saving decreases by $10 billion d. the aggregate expenditure line shifts upward by $10 billion e. the equilibrium level of real GDP demanded increases by $10 billionarrow_forwardIf autonomous planned investment increases by $100, and the MPC = 0.8, in the first round of spending GDP will increase by ___ and lead to an increase in consumer spending of ___. The second round of increase in GDP will be ___. A. $80; $80; $64 B. $100; $100; $80 C. $100; $80; $80 D. $80; $64; $64arrow_forwardAssume that the Equilibrium GDP is $4,000 billion. The Potential GDP is $5,000 billion. The marginal propensity to consume is 4/5 (0.8). By how much and in what direction should government purchases be changed? a. increase by $1,000 billion. c. increase by $100 billion. b. decrease by $1,000 billion. d. increase by $200 billion.arrow_forward
- 1. Country X has following data: C = 20 + 0.8Y4, I = 30, G = 40, Tx = 20, T, = 15, X = 60, M = 20 + 0.04Y, incoming year growth target is 600, All figures is billion. Please calculate: a. National income equilibrium! b. Consumption and saving equilibrium! c. Government income from tax! d. How much change in government consumption if they want to achieve growth target?arrow_forwardAssume the marginal propensity to save is 0.10. Firms become optimistic and increase investment spending by $10 billion. Other things being equal, real GDP will: Select one: a. increase by $10 billion. b. not change. c. increase by $1 billion. d. increase by $100 billion.arrow_forwardThe figure represents the consumption function for a consumer. The distance between C and D represents A. the amount of saving. B. the amount of autonomous consumption. C. the amount of dissaving. D. the point where saving equals zero.arrow_forward
- The sum of the marginal propensity to save and the marginal propensity to consume Select one: A. always equals 0. B. is greater than zero but less than 1. C. sometimes equals 1. D. always equals 1. E. never equals 1.arrow_forward7.C = a + byd, where a refers to autonomous consumption. Autonomous consumption is a.saving when income is zero b.consumption when income is zero c.consumption when income equals 1 d.saving when income equals 1arrow_forwardDon't use Ai. Answer in step by step with explanation.arrow_forward
- An economy with no government and no foreign trade tends to move toward equilibrium GDPbecause at output levels greater than equilibrium GDP, inventories are a)increasing, and actual investment exceeds desired investment.b)increasing, and actual investment is less than desired investment.c) decreasing, and actual investment exceeds desired investment.d)decreasing, and actual investment is less than the desired investment.arrow_forwardWhen planned investment exceeds saving in a private closed economy, Multiple Choice: ● ● ● aggregate expenditures will exceed GDP. aggregate expenditures will be less than GDP. aggregate expenditures will equal GDP. consumption plus investment will equal GDP.arrow_forwardD4arrow_forward
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