Refer to the above figure. If real GDP is 4 trillion, then
A) actual investment spending equals 1 trillion as planned investment spending plus unplanned inventory increases equal 1 trillion.
B) consumption expenditures are too low.
C) unplanned inventories will decrease.
D) unplanned inventories will increase.
Question 2
Which of the following causes autonomous consumption to decrease?
A) a decrease in consumer income
B) consumers becoming more optimistic about future decreases in the price level
C) an increase in average family size
D) consumers becoming more thrifty
An investment versus a bill
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