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: Without the povermment or the foreign sector in the income expenditure model, planned egte…
A: The aggregate expenditure is the sum of all the expenditures undertaken in the economy by the…
Q: Once more, consider the economy of Economia. If households started buying more houses and firms…
A: When talking about GDP, any change in buying behavior of households and firms will have a…
Q: Suppose that for a particular economy, nominal GDP in 2015 falls, compared to its previous level in…
A:
Q: When potential GDP increases, the potential GDP line and the aggrec curve O a. shifts leftward;…
A: In AD/AS graph, potential GDP is highlighted by LRAS curve which is vertical line. The LRAS is…
Q: Recession? O a) rising real estate values O b) a decrease in income tax rates Oc) an increase in…
A: Ans. is option (e) reduced wealth from falling stock prices.
Q: Which of the following does NOT affect potential GDP? O A. the quantity of capital and human capital…
A: Here, option E is correct. Becuase potential GDP is defined as the maximum output which can be…
Q: Suppose a US-owned firm in Canada imported S1000 worth goods from China in 2018. This company ended…
A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…
Q: We would expect falling nominal GDP if O net exports increased. Othere is disinflation. O production…
A: Nominal GDP is the sum total of goods and services produced in a country in an accounting year.…
Q: In an economy, planned aggregate expenditure is given by PAE = $500 billion - 0.6Y, where Y is equal…
A: Autonomous expenditure = $500 billion
Q: If Y= 450, C=400, S=50, 1=20 and aggregate expenditure is 420 then change in income expenditure is O…
A: In an economy, an equilibrium is identified at a level where aggregate expenditure equates to 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: The economy of HOYA has a spending mulipilier of 4. Based only on this information, we know that in…
A: The multiplier refers to how much change in the injection in any economy increases the level of…
Q: Notice that real GOP trends upward over time but experiences ups and downs in the short run. A…
A: Real GDP is a macroeconomic statistic that measures the value of the goods and services produced by…
Q: 15) The value of goods added to a firm's inventory in a certain year is treated as investment, since…
A: Gross domestic product is the market value of all goods and services produced in an economy in a…
Q: The consumption function is a straight-line relationship between consumption and income. O True O…
A: It is a mathematical expression that depicts the link between total consumption and gross national…
Q: If the correlation between GDP and x is -0.75, we say x is O A. countercyclical. O B. procyclical. O…
A: In an economy, correlation refers to the measurement that provides information about the relation…
Q: 17. Consider the following macroeconomic mode Time C= 200 + 0.8Y GI (Gross Investment)= 200 GP…
A: In an economy, the macroeconomic equilibrium is established at a level of real GDP where the…
Q: Question 11 When C + Ig = GDP in a private closed economy, S = Ig and there are no unplanned changes…
A: True
Q: Currently, in the U.S. economy, the largest component on the expenditures side of the GDP equation…
A: The economies tend to work upon the basis of the expenditures done by various entities, and the…
Q: . AR(2) with the deterministic trending model. E. AR(O) with the deterministic trending model. 1.…
A: *answer:
Q: China's Economy Just Shrank for the First Time in Decades. It Could Sti Eke Out Growth This Year…
A: Decreased: Investment=16% Consumer spending= 12.5% Exports=13%
Q: Consider the following Macro model: GDP Y=C+Gl+GP+NX C=120 +0.80Y, G.I-80 G.P=60 Tax 100 NX= -20 Yd…
A: GDP refers to the total value of finished goods and services that produced within the economic…
Q: Question 4 Assume the economy's consumption and saving schedules simuitaneously shift downward. This…
A: Consumption refers to the use of commodities and services by the consumers. Savings is the amount of…
Q: Which of the following statements about nominal and real GDP is correct? O A change in real GDP…
A: Below are the formulas for Real and Nominal GDP. Real GDP = Nominal GDP - InflationNominal GDP =…
Q: Question 43 Over the last 50 yearn, interent rates have risen before each recession and have fallen…
A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…
Q: t A Moving to another question will save this response. Quèstion 25 In an open mixed economy, the…
A: Answer:
Q: Consider the following Macro model: GDP=Y=C+GI+GP+NX C=120+0.80Y. G.I=80 G.P=60 Tax=100 NX= -20 Yd =…
A: Multiplier in economics is the factor by which the economic variables get multiplied due to a change…
Q: The reason(s) why real GDP grows, in the long run, is that Select one or more: O imports increase. O…
A: Gross domestic product refers to the economic tool to measure the national income of the people.
Q: Figure 8.2 TE 45 TE=C+I+G+(X-IM) In Figure 8.2, all of the following is true, except: O at full…
A: Equilibrium is established when aggregate demand equals output.
Q: If output is less than planned aggregate expenditure, there will be Lütfen birini seçin: O A. an…
A: In economics, the current value of all finished commodities and services in the economy is aggregate…
Q: If unplanned inventory investment is positive, then Select one: O a. planned aggregate expenditure…
A: Inventory investment is the value of the change in total inventories held in the economy during a…
Q: Assume an economy with a coal producer and a steel producer. In a giver ons of coal, selling for $5…
A: Given that The coal producer pays $50 million wages and steel producer pays $40 million wages,…
Q: What is the expenditure approach to measuring GDP? The expenditure approach to measuring GDP sums…
A: An expenditure approach is an approach that sums all the spending activities of the economy. These…
Q: n that national income is 800 crore nd consumption expenditure is 7640 rore, what is the average…
A:
Q: Which TWO of the following statements are correct? O a. The value of unsold goods that have been…
A: GDP - it is the value of all finished goods and service produced within a country within specific…
Q: If taxes fall and government spending rises by the same amount, there is very little change in GDP.…
A: When the federal government spends more money than it receives in taxes in a given year, it runs a…
Q: Refer to problem 2. The slope of the aggregate expenditure function is О .10 О 0.10 O 0.60 O 0.70
A: The aggregate expenditure represents the current market value of all the final goods and services…
Q: If investment spending is autonomous or independent of income, the slope of in the investment curve…
A: In an economy, investment spending refers to the total amount of money used by the busineses to make…
Q: Problem 1 The various expenditure categories within the economy are: C = 600+ 0.8Yd | = 800 G = 600…
A: Aggregate expenditure = C + I +G +X-M Where C holds the disposable income = Y-T Thus, AE = 600…
Q: Variations of actual real GDP around potential real GDP are called economic fluctuations. What is…
A: Variations od actual GDP around potential GDP are called economic fluctuations and is also termed as…
Q: Refer to the diagram. GDP The most built-in stability comes from ; and the largest cyclical de…
A: We have to find refer to the diagram.
Q: ompanies often produce more goods in a year than they end up selling. How do the nsold goods impact…
A: GDP measures the market value of goods and services produced within an economy in a given period of…
Q: AD2 AD1 AD3 Real Domestic Product, GDP Refer to the graph. Which of the following changes will…
A: A total demand or domestic last interest is the complete interest for definite labor and products in…
Q: Which of the following is NOT a component of planned aggregate expenditure? Select one: O a. Planned…
A: Planned aggregate expenditure is the expenditure in an economy planned beforehand. It depends on the…
Q: The total expenditure in Macroland begins with these initial levels (in trillions of dollars): GDP =…
A: Consumption function: C = Ca + MPC (Y-T) Where C is consumption Ca is autonomous consumption MPC is…
Q: Say's law explains the short-run differences between actual GDP and potential GDP. Select one: O…
A: Potential GDP basically refers to a measure of an economy's maximum, ideal output, which includes…
Q: Which of the following is a sign that an economy is in poor health? a) a prolonged decline in total…
A: the correct option is a A prolonged decline in total output A prolonged decline in total output…
Q: Which of the following is an injection in the circular flow of income? O Investment O Taxes O…
A: The injections are economic factors (or variables) that help in increasing the output level in an…
Q: Between 2017 and 2018, the exports of the X economy decreased by $5S billion and its imports…
A: GDP = C + I + G + (X - M)
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- If C is $90, Ig is $60, Xn is –$5, and G is $20, what is the economy’s equilibrium GDPdecrease increase none of the components of GDPnot change (nave no effect on) should beshould not be the consumption spending component preliminary value the export spending component preliminary value the government spending component preliminary value the net exports component preliminary value two or more of the components of GDPDuring recessions which type of spending falls?a. consumption and investmentb. investment but not consumptionc. consumption but not investmentd. neither consumption nor investment
- MPC and MPS measure changes in consumption expenditure and saving that result from changes ?. A. expected inflation. (b) disposable income. (c). expected future income. (d)governmente expenditure on goods and services.Calculate growth in GDP under the following conditions (show calculations): Government spending decreased by $400 billon Taxes were increased by $400 billion Marginal propensity to save is 40%.1. A. Is nominal GDP a flow variable? B. Is real GDP a flow variable? C. Is labor force a stock variable? D. Is exports a stock variable?
- Which components of Aggregate Expenditure change as a result of a change in real GDP? Question 3Answer a. consumption, investment, and exports b. consumption and investment c. consumption, investment, and government expenditures d. consumption and governments e. consumption and importsIt is the year 2020. Natalie purchases a home that was built in 2020. In GDP accounting, this purchase is included in Question 40 options: A) personal consumption expenditures B) govenment purchases C) exports D) gross private domestic investmentIn an economy, MPC = 0.81 Calculate the value of MPS
- Give typing answer with explanation and conclusion to all parts In the United States, real GDP is currently calculated using A) a variable-weighting scheme. B) a chain-weighting scheme. C) a fixed-weighting scheme. D) an autoregressive scheme.Given the following, Ca = $500, Ig = $250, Xn = − $10, and G = $30, what is the economy’s equilibrium GDP ?You did some work on it. Sub parts to be completed/solved. Need help with this 1. Spending - Included in the U.S. GDP for 2020, or not included ? If so, under which expenditure category (C, I, G, X etc,?) If not, why not? A.You buy a $20,000 new Toyota made in San Antonio. ____________________ B. Microsoft buys a $20,000 new Toyota made in San Antonio ________________ C. Kendrick Jones, of Alberta, Canada, buys a $20,000 new Toyota made in San Antonio_______________ D. You buy $20,000 in General Motors Corporation stock ___________________ E. You pay a lawyer $2,000 to sue your neighbor for building a fence on your land, and lose the suit. ________________________ F, You buy your neighbor’s used fence for $1,000. _________________________ H. You pay Alamo Colleges $1200 tuition for classes you took during 2020 ____________________________ I. The federal government sends Nruce Borton a social security check for $600 during 2020. _______________________________ J. The San…