Author Question: When aggregate planned expenditure is less than GDP, A) the economy definitely is at its ... (Read 14 times)

nummyann · **on:** Jun 29, 2018

When aggregate planned expenditure is less than GDP,

A) the economy definitely is at its equilibrium expenditure but even so, firms decrease production.
B) firms increase production until the economy reaches equilibrium expenditure.
C) the economy definitely is at its equilibrium expenditure and firms do not change production.
D) firms decrease production until the economy reaches equilibrium expenditure.
E) the economy might be at its equilibrium expenditure and if it is, firms do not change their production.

Question 2

Referring to Figure 19.1, if the exchange rate is currently 11 pesos per dollar, then we expect the dollar to ________ and the peso to ________.

A) depreciate; depreciate B) appreciate; depreciate
C) depreciate; appreciate D) appreciate; appreciate