Author Question: Unplanned inventories increase when A) aggregate planned expenditure is less than GDP. B) actual ... (Read 227 times)

mynx · **on:** Jun 29, 2018

Unplanned inventories increase when

A) aggregate planned expenditure is less than GDP.
B) actual aggregate expenditure is greater than aggregate planned expenditure.
C) actual aggregate expenditure is equal to GDP.
D) actual aggregate expenditure is less than GDP.
E) real GDP is less than aggregate planned expenditure.

Question 2

The trends displayed in the table can best be explained by

A) service industries have increased as a proportion of the economy and they tend to have higher nominal wage rates.
B) the inflation rate has been rising over the time period.
C) the real wage rate has increased at a rate about equal to the inflation rate.
D) the nominal wage rate has increased at a rate about equal to the inflation rate.
E) None of the above can explain the trends in the figure.