« previous next »

Author Question: A country reports that it has an unplanned inventory increase of 1.0 trillion. Discuss how the ... (Read 85 times)

geoffrey

  • Hero Member
  • *****
  • Posts: 880
on: Jun 29, 2018
A country reports that it has an unplanned inventory increase of 1.0 trillion. Discuss how the economy adjusts until it reaches an unplanned inventory change of 0.0 trillion.
 
  What will be an ideal response?

Question 2

When ________ changes, the supply of loanable funds curve shifts.
 
  A) the price level
  B) animal spirits
  C) people's expected future income
  D) the expected rate of profit
  E) investment


abro1885

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Jun 29, 2018
Answer to Question 1

When unplanned inventory changes are positive, real GDP exceeds aggregate planned expenditures. There is an inventory buildup, so firms decrease production and as a result real GDP decreases. Firms continue to decrease production until real GDP equals aggregate planned expenditures and unplanned inventory changes equal zero.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Caleb Goodwin, Inventory of Slaves and Livestock. Caleb Goodwin, Inventory of Slaves and Livestock.
How do you set yourself apart in a country so rich that of its 4.6 million people, 79,000 are ... How do you set yourself apart in a country so rich that of its 4.6 million people, 79,000 are ...
U.S. suburbs were once unplanned, rambling affairs that took irregular shapes as people moved away ... U.S. suburbs were once unplanned, rambling affairs that took irregular shapes as people moved away ...
Atmospheric pressure decreases with increase in altitude. Atmospheric pressure decreases with increase in altitude.
Modern machinery has helped farmers increase yields Modern machinery has helped farmers increase yields
The price of rice in a small country is currently $6 per pound. In order to help low-income ... The price of rice in a small country is currently $6 per pound. In order to help low-income ...
Video: Calvin Cycle Explained!

For a complete list of videos, visit our video library