Author Question: If, at some level of output, total planned real expenditures are less than real Gross Domestic ... (Read 62 times)

CharlieWard · **on:** Jun 30, 2018

If, at some level of output, total planned real expenditures are less than real Gross Domestic Product (GDP)

A) real GDP will either fall or remain unchanged, depending on the MPC.
B) real GDP will rise.
C) unplanned inventories will increase and real GDP will fall.
D) real GDP remains unchanged.

Question 2

Recall the Application. If country A has a lower overall income tax rate than country B, and labor can freely and easily move between the two countries, real wages in country B will tend to ________ and employment in country B will tend to ________.

A) decrease; increase B) increase; decrease C) increase; increase D) decrease; decrease