This topic contains a solution. Click here to go to the answer

Author Question: Equilibrium expenditure is the level of expenditure at which A) aggregate planned expenditure ... (Read 357 times)

mynx

  • Hero Member
  • *****
  • Posts: 555
Equilibrium expenditure is the level of expenditure at which
 
  A) aggregate planned expenditure minus planned changes in inventories equals real GDP.
  B) aggregate planned expenditure plus planned changes in inventories equals real GDP.
  C) firms' inventories are zero.
  D) firms produce more output than they sell.
  E) firms' inventories are at the desired level.

Question 2

Purchasing power parity does NOT provide accurate predictions of exchange rates because
 
  A) almost all goods and services are traded across nations.
  B) governments currently fix exchange rates.
  C) firms are unable to set prices differently across nations.
  D) non-traded goods account for approximately 50 percent of the value of production in an economy.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

CourtneyCNorton

  • Sr. Member
  • ****
  • Posts: 317
Answer to Question 1

E

Answer to Question 2

D





 

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

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.

For a complete list of videos, visit our video library