This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In the above diagram, what happens if the real GDP is 3 trillion? 5 trillion? 7 trillion? What is ... (Read 99 times)

cherise1989

  • Hero Member
  • *****
  • Posts: 555
on: Jun 30, 2018
In the above diagram, what happens if the real GDP is 3 trillion? 5 trillion? 7 trillion? What is the equilibrium level of real GDP? Why?
 
  What will be an ideal response?

Question 2

Technical support provided by an Indian firm to a multinational company headquartered in New York is an example of a(n) ________.
 
  A) capital account transaction B) export of services by India
  C) transfer payment to the U.S. D) import of services by India


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

AISCAMPING

  • Sr. Member
  • ****
  • Posts: 347
Reply #1 on: Jun 30, 2018
Answer to Question 1

At real GDP of 3 trillion, planned real investment is greater than real saving, which means households are buying more than producers had anticipated. There is an unplanned inventory decrease of 500 billion, and businesses increase production and hiring. At 5 trillion, planned real investment and planned real saving are equal, so this is the equilibrium. At 7 trillion, planned real saving is greater than planned real investment so there is an unplanned increase in inventories of 500 billion. Businesses reduce production and lay off workers, forcing real GDP back towards 6 trillion.

Answer to Question 2

B


cherise1989

  • Member
  • Posts: 555
Reply 2 on: Jun 30, 2018
Wow, this really help

robbielu01

  • Member
  • Posts: 336
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Plant Parts Diagram Plant Parts Diagram
Carbon Dioxide Phase Diagram Carbon Dioxide Phase Diagram
Plant Diagram Plant Diagram
Energy Level Diagram of Hydrogen Energy Level Diagram of Hydrogen
diagram of question asked diagram of question asked
Mixing schematic Diagram CHE 415 unit operations experiment apparatus Mixing schematic Diagram CHE 415 unit operations experiment apparatus
Video: ACTH/Cortisol (glycogenolysis, protein catabolism, lipolysis and gluconeogenesis)

For a complete list of videos, visit our video library