1. Suppose real GDP is currently $500 billion. Assuming that the price level remains constant, this would mean that (first blank) (choices in picture) 2. Which would send a signal to firms to either: A. Increase productionB. Keep production the sameC. Decrease production 6. Aggregate expenditure and incomeSuppose the following table shows consumption (C), investment (I), government purchases (G), and net exports (NX) in a hypothetical economyfor various levels of real GDP. Assume that the price level remains unchanged at all levels of real GDP.Real GDPCIGNX(Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars)500425200150-50600450200150-50700475200150-50800500200150-50900525200150-50The following graph shows real GDP on the horizontal axis and aggregate expenditure on the vertical axis.orange line (square symbol) to plot a 45-degree line on this graph.en use thepoints (circle symbols) to plotUseaggregateexpenditure line for this economy. the economy is in equilibriumaggregate expenditure must also equal $500 billion þ indicate the equilibrium output at this price level.| firms would have a $225 billion reduction in inventories axes.firms would have excess inventories of $225 billionthe price level remains constant, this would mean thatwhich would send a signal to firms to

The aggregate supply signifies the amount of final commodities and services that business firms are…

1. Suppose real GDP is currently $500 billion. Assuming that the price level remains constant, this would mean that (first blank) (choices in picture) 2. Which would send a signal to firms to either: A. Increase production B. Keep production the same C. Decrease production

1. Suppose real GDP is currently $500 billion. Assuming that the price level remains constant, this would mean that (first blank) (choices in picture) 2. Which would send a signal to firms to either: A. Increase production B. Keep production the same C. Decrease production

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Tracking The U.s. Economy

Section: Chapter Questions

Problem 1.2P

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Question

1. Suppose real GDP is currently $500 billion. Assuming that the price level remains constant, this would mean that (first blank) (choices in picture)

2. Which would send a signal to firms to either:

A. Increase production

B. Keep production the same

C. Decrease production

6. Aggregate expenditure and income
Suppose the following table shows consumption (C), investment (I), government purchases (G), and net exports (NX) in a hypothetical economy
for various levels of real GDP. Assume that the price level remains unchanged at all levels of real GDP.
Real GDP
C
I
G
NX
(Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars)
500
425
200
150
-50
600
450
200
150
-50
700
475
200
150
-50
800
500
200
150
-50
900
525
200
150
-50
The following graph shows real GDP on the horizontal axis and aggregate expenditure on the vertical axis.
orange line (square symbol) to plot a 45-degree line on this graph.
en use the
points (circle symbols) to plot
Use
aggregate
expenditure line for this economy.

the economy is in equilibrium
aggregate expenditure must also equal $500 billion þ indicate the equilibrium output at this price level.
| firms would have a $225 billion reduction in inventories axes.
firms would have excess inventories of $225 billion
the price level remains constant, this would mean that
which would send a signal to firms to

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

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