Equilibrium expenditure is the level of expenditure at which ...

[mynx]

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.

[CourtneyCNorton]

Answer to Question 1

E

Answer to Question 2

D

[mynx]

Thank you

[CourtneyCNorton]

Happy to help you