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- Question 9 Homework . Unanswered When aggregate expenditures are less than aggregate output, businesses experience: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. higher sales and higher profits than anticipated. a an increase in prices which leads to an increase in the quantity supplied of aggregate output. unplanned increases in inventories and respond by decreasing produdion. optimism regarding future economic conditions. PlConsider that the macroeconomy is hit by aftershocks. Exports decrease by $40 billion and imports increase by $200 billion. Modify your macroeconomic model to reflect both these aftershocks 1. At GDP of 7400: 1. Inventories are in surplus by 80 2. Inventories are in shortage by 80 3. Equilibrium is achieved by the macroeconomy according to the Keynesians 4. Inventories are in surplus by 240 2. At GDP of 8200: Inventories are in surplus by 320, Inventories are in shortage by 320, Equilibrium is achieved by the macroeconomy according to the Keynesians, or Inventories are both in surplus and shortage by 240 3. At GDP of 5000: Inventories are in surplus by 80, Inventories are in shortage by 80, Equilibrium is achieved by the macroeconomy according to the Keynesians, or Inventories are in surplus by 240 4. At GDP of 5800, exports are: 5. At GDP of 9000, imports are: 6. At the new equilibrium GDP, the economy is in: 7. The marginal propensity to consume (MPC) for your…1) If investment spending depends on GDP, this is called induced investment? T/F 2) A change in the price level will cause a shift in the expenditure schedule. T/F 3) A decrease in the price level causes a lower equilibrium quantity demanded? T/F
- The long-run aggregate supply curve touches the horizontal axis at a value that equals O Aggregate autonomous spending. O planned investment expenditure. unplanned investment. potential GDP. all answers.I. Disequilibrium occurs when planned aggregate expenditure is greater than aggregate income II. Disequilibrium occurs when planned aggregate expenditure is less than aggregate income II. When planned aggregate expenditure is exceeded by aggregate income, production is cut back so as to adjust output downward until equilibrium is reached IV. When planned aggregate expenditure exceeds aggregate income, production is increased so as to adjust output upward until equilibrium is reached O Only Statements I and Il are true Only Statements II and Ill are true O Only Statements Ill and IV are true O All Statements are false O All Statements are trueIf output is less than planned aggregate expenditure, there will be Group of answer choices no change in inventories. an unplanned increase in inventories. an unplanned decrease in inventories. a planned increase in inventories.
- At equilibrium expenditure, unplanned change in inventories must be positive * O True O FalseWhen the price level falls A) the slope of the aggregate expenditures curve changes. B) the aggregate expenditure curve remains constant. C) the aggregate expenditures curve shifts down. D) the aggregate expenditures curve shifts upIncreases in personal income taxes increase disposable income. increase aggregate demand. decrease aggregate demand. both B and C
- Calculate autonomous spending with the given info C = 400 + 0.6YA recessionary gap: Would cause a depletion of inventories. Would occur if total output were less that aggregate demand. Is the amount by which aggregate expenditure falls short of full employment GDP. Is the amount by which total spending exceeds GDP.The consumption expenditure and output of the country is 500 billion and 100 billion respectively. Calculate the average propensity to consume.