MACROECONOMICS W/CONNECT
18th Edition
ISBN: 9781307253092
Author: McConnell
Publisher: Mcgraw-Hill/Create
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Question
Chapter 11, Problem 4RQ
To determine
The change in output due to the change in inventory.
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Students have asked these similar questions
In this graph, if firms are producing at level Y2, then inventories will _____, inducing firms to _____ production.
a. rise; not change
b. rise; increase
c. remain unchanged; decrease
d. remain unchanged; not change
4)
economy is in a recession and decrease(s) when the
U.S. economy is expanding.
A) Consumer spending
B) Planned investment
C) Net exports
D) Unplanned investment
usually increase(s) when the U.S.
During 2019, a country reported that its real GDP increased by $3.0 billion. The multiplier for this economy is known to be equal to 10.Which of the following might have caused the increase in real GDP?
Question 12Answer
a.
Exports increased by $0.3 billion.
b.
Investment decreased by $0.3 billion.
c.
Exports decreased by $0.3 billion.
d.
Imports increased by $0.3 billion.
e.
Government expenditure on goods and services increased by $3 billion.
Chapter 11 Solutions
MACROECONOMICS W/CONNECT
Ch. 11.2 - Prob. 1QQCh. 11.2 - Prob. 2QQCh. 11.2 - Prob. 3QQCh. 11.2 - Prob. 4QQCh. 11.7 - Prob. 1QQCh. 11.7 - Prob. 2QQCh. 11.7 - Prob. 3QQCh. 11.7 - Prob. 4QQCh. 11 - Prob. 1DQCh. 11 - Prob. 2DQ
Ch. 11 - Prob. 3DQCh. 11 - Prob. 4DQCh. 11 - Prob. 5DQCh. 11 - Prob. 6DQCh. 11 - Prob. 7DQCh. 11 - Prob. 8DQCh. 11 - Prob. 1RQCh. 11 - Prob. 2RQCh. 11 - Prob. 3RQCh. 11 - Prob. 4RQCh. 11 - Prob. 5RQCh. 11 - Prob. 6RQCh. 11 - Prob. 7RQCh. 11 - Prob. 8RQCh. 11 - Prob. 9RQCh. 11 - Prob. 1PCh. 11 - Prob. 2PCh. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6PCh. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 9PCh. 11 - Prob. 10P
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- 1. An increase in the desire to save leads to a decrease in gross domestic product. True or false 2. An increase in investment leads to an increase in gross domestic product. Equilibrium occurs when the forces of expansion and contraction are in equilibrium, that is, when savings are greater than the desired investment. True or false 3. The term aggregate expenditure indicates how the aggregate quantity of goods and services demanded depends on the average price level. True or falsearrow_forwardIf investment increases by $50 billion, by how much will aggregate demand change? Aggregate demand will _______. A. increase by less than $50 billion because there will be fewer goods and services produced for consumption expenditure B. increase by more than $50 billion because the increase in aggregate income induces an increase in consumption expenditure C. probably decrease by $50 billion, but it depends on the change in aggregate supply D. increase by exactly $50 billion because investment is a component of aggregate demandarrow_forwardQUESTION 21 What is the marginal propensity to consume? a. The ratio of the change in consumption to the change in national income O b. The proportion of national income that goes on consumption O c. The additional spending by a consumer when the price of a good falls O d. The additional revenue received by a firm when it attracts a new customerarrow_forward
- AE, 200 50 45° 200 Aggregate output ($ millions) Figure 8.11 Refer to Figure 8.11. A $20 million decrease in autonomous consumption Select one: a. changes equilibrium expenditure to $120 million. b. will change the MPC. c. changes equilibrium output to $180 million. d. will change the MPS. Aggregate expenditures ($ millions)arrow_forwardClick on the icon to read the news clip, then complete the following steps. Business inventories fall when real GDP rises because 1800- 1600- Aggregate expenditure (billions of 2002 dollars) ○ A. inventories are falling from above target to their target levels 1400- B. firms put more production time into producing consumption goods and services OC. firms put more production time into producing exports 1200- OD. both B and C are correct 1000- The graph shows the aggregate planned expenditure curve. Draw a new AE curve to show the effect of an increase in exports and business investment. Label it AE₁. 8004 800 1000 1200 1400 45 degree line G AE 1600 1800 Draw a point at the new equilibrium expenditure. Draw an arrow along the new AE curve to show the effect of the increase in real GDP on consumption expenditure. Real GDP (billions of 2002 dollars) >>> Draw only the objects specified in the question. - News clip Business Inventories Decline, GDP Rises Real gross domestic product (GDP)…arrow_forwardThe following table shows data for the economy before the decrease in saving. Suppose that the decrease in saving causes consumption to rise from $280 million to $320 million. Assume Say's law holds in this economy. Fill in the data for the economy after the decrease in saving. Before Saving Decrease After Saving Decrease Consumption (C) $280 million $320 million Investment (I) $200 million $ million Government Purchases (G) $250 million $ million Exports (EX) $500 million $500 million Imports (IM) $300 million $300 million As a result of the decrease in saving, total expenditures will .arrow_forward
- Graphing Question The graph shows the aggregate demand and short-run aggregate supply curves for an economy. Draw an aggregate demand curve that shows the effect of an increase in investment. Label it AD₁. Then draw an aggregate demand curve that shows the multiplier effect of the increase in investment if the multiplier is positive. Label it AD,. QQ (C) Price level 130- 120- 110- AD 100- 90+ 1.6 SRASO 1.8 20 2.2 Real GDP (trillions of 2012 dollars) ADO 2.4arrow_forwardTotal planned expenditure is also called ______. a. Exports minus imports b. Aggregate demand c. Aggregate supply d. Revenues greater than expensesarrow_forward1. The marginal propensity to consume is:A) the change in consumption divided by the change in income.B) consumption divided by income.C) the change in consumption divided by the change in saving.D) The change in saving divided by the change in income.arrow_forward
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