MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Question
Chapter 9, Problem 20SQ
To determine
The impact when the real GDP is $1,000 and the disposable income is $600.
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At equilibrium expenditure, unplanned changes in inventory
O must be negative.
might be either positive or negative.
O must be zero.
O must be positive.
181.Which of the following statements is accurate?
a.When unplanned inventory changes are positive, GDP is below its equilibrium value
b.When unplanned inventory changes are negative, GDP is above its equilibrium value
c.When unplanned inventory changes are positive, GDP is at its equilibrium value
d.When unplanned inventory changes are negative, GDP is below its equilibrium value
e.None of the above
182.When unplanned inventory changes are positive, GDP is current at its equilibrium level
a.True
b.False
183.Consider Figure 11-10 above. Which of the following is true?
a.Equilibrium GDP is $8 trillion
b.Unplanned inventory changes are $0.4 trillion when GDP is $8 trillion
c.Equilibrium GDP is $7 trillion
d.The MPC is 1
e.Government expenditures are $8.6 trillion
184.Consider Figure 11-10 above. Equilibrium GDP occurs at
a.$7 trillion
b.$8 trillion
c.$9 trillion
d.$8.6 trillion
e.there is…
a) Nominal wages are slow to adjust to changing economic conditions. Discuss the implication of this stickiness of wage for short run aggregate supply curve with relevant example.
b) Using circular-flow diagram, explain why an economy’s income must equal its expenditure.
Chapter 9 Solutions
MACROECONOMICS FOR TODAY
Ch. 9.4 - Prob. 1YTECh. 9 - Prob. 1SQPCh. 9 - Prob. 2SQPCh. 9 - Prob. 3SQPCh. 9 - Prob. 4SQPCh. 9 - Prob. 5SQPCh. 9 - Prob. 6SQPCh. 9 - Prob. 7SQPCh. 9 - Prob. 8SQPCh. 9 - Prob. 9SQP
Ch. 9 - Prob. 10SQPCh. 9 - Prob. 1SQCh. 9 - Prob. 2SQCh. 9 - Prob. 3SQCh. 9 - Prob. 4SQCh. 9 - Prob. 5SQCh. 9 - Prob. 6SQCh. 9 - Prob. 7SQCh. 9 - Prob. 8SQCh. 9 - Prob. 9SQCh. 9 - Prob. 10SQCh. 9 - Prob. 11SQCh. 9 - Prob. 12SQCh. 9 - Prob. 13SQCh. 9 - Prob. 14SQCh. 9 - Prob. 15SQCh. 9 - Prob. 16SQCh. 9 - Prob. 17SQCh. 9 - Prob. 18SQCh. 9 - Prob. 19SQCh. 9 - Prob. 20SQ
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- Question 2 Refer to the data in Table 1, the consumption function is C = 200+ 0.8 (Y-T). Fill in the columns in the table columns and identify the equilibrium output. How do firms react to unplanned inventory? Table 1 Income Net Disposable Income Y Taxes Consumption Saving C Government Purchases G Planned Aggregate Expenditure C+I+G Unplanned Inventory Change Y-(C+I+G) S=Yd-C T Yd=Y-T 0 50 200 850 50 200 1700 50 200 2550 50 200 3400 50 200 4250 50 200 ¨¨¨ Planned Investment Spending, I 150 150 150 150 150 150arrow_forward17 he following are the components of aggregate demand EXCEPT, consumption of households. government spending. investment by firms. household saving. Clear my choicearrow_forwardDisposableIncomeYd ConsumptionC $2,000 $2,040 2,100 2,120 2,200 2,200 2,300 2,280 2,400 2,360 Refer to Exhibit 10-3. The marginal propensity to consume (MPC) is ___________?arrow_forward
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