EBK EXPLORING MACROECONOMICS
7th Edition
ISBN: 9780100546400
Author: Sexton
Publisher: YUZU
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Question
Chapter 15, Problem 10P
To determine
To explain:
The reason behind an unplanned inventory in the aggregate expenditure model changes the key to
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Chapter 15 Solutions
EBK EXPLORING MACROECONOMICS
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- What are the various factors which influence propensity to consumearrow_forwardWhat would an increase in planned investment increases real GDP, but an unplanned increase in inventory investment decrease real GDP in the aggregate expenditure model?arrow_forwardAn economy is described by the following equations: C= 1500 + 0.75(Y - T) po = 800 G= 1500 X = 100 M=0 T=1500 †=0 Y* = 12000 a) Find a numerical equation linking planned aggregate expenditure to output. b) Find its exogenous expenditure and induced expenditure in this economyarrow_forward
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- TRUE/FALSE If aggregate expenditures exceed aggregate income then inventories will rise and firms will eventually lay off workers.arrow_forwardCalculate the value of consumption expenditure from the following:- National income = $6000 Autonomous consumption = $1000 Marginal propensity to consume = 0.80arrow_forwardAt a aggregate output level of $200 billion what is planned aggregate expenditure?arrow_forward
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