EBK EXPLORING MACROECONOMICS
7th Edition
ISBN: 9780100546400
Author: Sexton
Publisher: YUZU
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Question
Chapter 15, Problem 11P
To determine
To explain:
The reason for increase in planned investment increases the real GDP, but an unplanned increase in inventory investment decreases it.
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Students have asked these similar questions
What would an increase in planned investment increases real GDP, but an unplanned increase in inventory investment decrease real GDP in the aggregate expenditure model?
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Why can’t an economy with an MPC greater than 1 reach a stable equilibrium in the aggregate expenditure model?
Chapter 15 Solutions
EBK EXPLORING MACROECONOMICS
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Similar questions
- Calculate the value of consumption expenditure from the following:- National income = $6000 Autonomous consumption = $1000 Marginal propensity to consume = 0.80arrow_forwardCalculate autonomous consumption expenditure from the following date about an economy which is In equilibrium.National income = Rs. 1,100Marginal propensity to save = 0.20Investment expenditure = Rs. 80(Autonomous Consumption Expenditure = 120arrow_forwardThe multiplier model: Consumption spending refers to ________ spending on goods and services.arrow_forward
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