The option that correctly states that the effect on economy if real GDP exceeds or is less than planned expenditure.

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Answer 1

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Chapter 30, Problem 5MCQ

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The option that correctly states that the effect on economy if real GDP exceeds or is less than planned expenditure.

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The ratio of the change in GDP to an initialchange in aggregate expenditures (AE) is thea. spending multiplier.b. permanent income rate.c. marginal expenditure rate.d. marginal propensity to consume.

Which of the following statements is most accurate? a.Most of the variation in consumption spending can be explained by changes in debt b. There is no single factor that explains much of the variation in consumption spending c. Most of the variation in consumption spending can be explained by changes in the interest rate. d. Most of the variation in consumption spending can be explained by changes in wealth e. most of the variation in consumption spending can be explained by changes in disposable income.

based on macroeconomic theory, one of the following four answers is a correct description of the concept, “expenditure multiplier”. Which one? A/ It is the idea that decreasing national income affects the equilibrium level of GDP by the same amount of that decrease in income. B/ It is the concept that increasing national income affects the equilibrium level of GDP on par with the amount of increased income. C/ The expenditure multiplier is the idea that a given change in spending leads to an equal change in the equilibrium level of GDP. D/ It is the concept that an increase in spending causes a more than proportionate change in GDP.

Answer 2

Question

Chapter 30, Problem 5MCQ

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To explain:

The option that correctly states that the effect on economy if real GDP exceeds or is less than planned expenditure.

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Answer 3

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Chapter 30, Problem 5MCQ

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To explain:

The option that correctly states that the effect on economy if real GDP exceeds or is less than planned expenditure.

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Answer 4

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Chapter 30, Problem 5MCQ

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To explain:

The option that correctly states that the effect on economy if real GDP exceeds or is less than planned expenditure.

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Answer 5

Chapter 30, Problem 5MCQ

To determine

To explain:

The option that correctly states that the effect on economy if real GDP exceeds or is less than planned expenditure.

Answer 6

Chapter 30, Problem 5MCQ

To determine

To explain:

The option that correctly states that the effect on economy if real GDP exceeds or is less than planned expenditure.

Answer 7

Chapter 30, Problem 5MCQ

To determine

To explain:

The option that correctly states that the effect on economy if real GDP exceeds or is less than planned expenditure.

Answer 8

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Answer 9

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Answer 11

Ch. 30 - Prob. 1SPPA Ch. 30 - Prob. 2SPPA Ch. 30 - Prob. 3SPPA Ch. 30 - Prob. 4SPPA Ch. 30 - Prob. 5SPPA Ch. 30 - Prob. 6SPPA Ch. 30 - Prob. 7SPPA Ch. 30 - Prob. 8SPPA Ch. 30 - Prob. 9SPPA Ch. 30 - Prob. 1IAPA

The option that correctly states that the effect on economy if real GDP exceeds or is less than planned expenditure.

Solution Summary: The author explains that if real GDP exceeds planned expenditure, the economy converges to equilibrium expenditure because inventories are run down and firms increase production.

To explain:

The option that correctly states that the effect on economy if real GDP exceeds or is less than planned expenditure.

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Chapter 30 Solutions

The option that correctly states that the effect on economy if real GDP exceeds or is less than planned expenditure.

Solution Summary: The author explains that if real GDP exceeds planned expenditure, the economy converges to equilibrium expenditure because inventories are run down and firms increase production.

To explain: The option that correctly states that the effect on economy if real GDP exceeds or is less than planned expenditure.

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Chapter 30 Solutions

To explain:

The option that correctly states that the effect on economy if real GDP exceeds or is less than planned expenditure.