Acme Manufacturing is producing $4,020,000 worth of goods this year and expects to sell its entire production. It also is planning to purchase $1,500,000 in new equipment during the year. At the beginning of the year, the company has $500,000 in inventory in its warehouse. Find actual investment and planned investment if: Instructions: Enter your responses as whole numbers. Actual investment Planned investment a. Acme actually sells $3,850,000 worth of goods. $ $ b. Acme actually sells $4,000,000 worth of goods. $ $ c. Acme actually sells $4,200,000 worth of goods. $ $
Acme Manufacturing is producing $4,020,000 worth of goods this year and expects to sell its entire production. It also is planning to purchase $1,500,000 in new equipment during the year. At the beginning of the year, the company has $500,000 in inventory in its warehouse. Find actual investment and planned investment if: Instructions: Enter your responses as whole numbers. Actual investment Planned investment a. Acme actually sells $3,850,000 worth of goods. $ $ b. Acme actually sells $4,000,000 worth of goods. $ $ c. Acme actually sells $4,200,000 worth of goods. $ $
Chapter23: The Aggregate Expenditure Model
Section: Chapter Questions
Problem 1P
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Question
Acme Manufacturing is producing $4,020,000 worth of goods this year and expects to sell its entire production. It also is planning to purchase $1,500,000 in new equipment during the year. At the beginning of the year, the company has $500,000 in inventory in its warehouse. Find actual investment and planned investment if:
Instructions: Enter your responses as whole numbers.
| Actual investment | Planned investment | |
| a. Acme actually sells $3,850,000 worth of goods. | $ | $ |
| b. Acme actually sells $4,000,000 worth of goods. | $ | $ |
| c. Acme actually sells $4,200,000 worth of goods. | $ | $ |
Assuming that Acme’s situation is similar to that of other firms, in which of these three cases is output equal to short-run equilibrium output?
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Case b
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Case c
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Case a
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None
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