Question 4 if total spending rises from one year to the next, then which of the following could not be true? b.the economy is producing a larger output of goods and services, and goods and services are selling at lower prices c.the economy is producing a larger output of goods and services, and goods and services are selling at higher prices a.the economy is producing a smaller output of goods and services, and goods and services are selling at higher prices d.the economy is producing a smaller output of goods and services, and goods and services are selling at lower prices

Question 4 if total spending rises from one year to the next, then which of the following could not be true? b.the economy is producing a larger output of goods and services, and goods and services are selling at lower prices c.the economy is producing a larger output of goods and services, and goods and services are selling at higher prices a.the economy is producing a smaller output of goods and services, and goods and services are selling at higher prices d.the economy is producing a smaller output of goods and services, and goods and services are selling at lower prices

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

See similar textbooks

Similar questions

Suppose that an economy consists of only two individuals. Jeremy has $1150 available to spend on goods. He decides to purchase $750 worth of produce from Michele in the current month. No other economic activity takes place during the current month. Using this information, answer the questions. For the current month, what is the economy's income? $ For the current month, what is the economy's expenditure? $ In an economy, how are income and expenditure related? O Income is less than expenditure. Income is greater than expenditure. They are unrelated. O They are equal.
Suppose that an economy consists of only two individuals. Trevor has $1310 available to spend on goods. He decides to purchase $130 worth of produce from Krista in the current year. No other economic activity takes place during the current year. Using this information, answer the questions. For the current year, what is the economy's income? For the current year, what is the economy's expenditure? In an economy, how are income and expenditure related? O Income is greater than expenditure 24 MacBook Air In an economy, how are income and expenditure related? Income is greater than expenditure. O They are equal. Income is less than expenditure. They are unrelated.
Which of the following is NOT accounted in the expenditure approach? a. Food b. Furniture c. Used cars d. Education
What is induced spending? Select one: A. The portion of total spending that is dependent of the level of income. B. The portion of total spending that is independent of the level of income. C. The portion of income that is dependent on the level of spending. * D. The level of spending which varies with the level of prices.
Classify each of the following items as a final good or service or an intermediate good or service, and identify which is a component of consumption expenditure, investment, or government expenditure on goods and services. A. A new limousine for the president B. A DVD bought by a household C. Steel sheets bought by General Motors D. A new apartment building O 1. Ais a final good that is government expenditure, B is a final good that is consumption expenditure, C is an intermediate good, and D is a final good that is investment. O 2. A is an intermediate good, B is a final good that is investment, C is an intermediate good, and D is a final good that is investment. O 3. Ais a final good that is government expenditure, B is a final good that is consumption expenditure, Cis a final good that is consumption expenditure, and D is a final good that is consumption expenditure. O 4. Ais an intermediate good, B is a final good that is consumption expenditure, C is an intermediate good, and D is…
Classify each of the following items as a final good or service or an intermediate good or service, and identify which is a component of cons government expenditure on goods and services. A. A new limousine for the president B. Banking services bought by a student C. New airplanes bought by United Airlines D. Packing boxes bought by Amazon.com O 1. A is an intermediate good, B is a final service that is consumption expenditure, C is a final good that is investment, and D is a final good that is investment. O2. A is a final good that is government expenditure, B is a final service that is consumption expenditure, C is a final good that is consumption expenditure, and D is a final good that is investment. O 3. A is an intermediate good, B is a final service that is investment, C is a final good that is investment, and D is an intermediate good. O4. A is a final good that is government expenditure, B is a final service that is consumption expenditure, C is a final good that is investment,…
Question 1 Equilibrium in the goods market exists when production, Y, is equal to the demand forgoods, Z.Explain the determination of equilibrium output in the goods market, use relevantalgebra and graphs.Your discussion should include the following concepts• Consumption Spending• Investment Spending• Government spending
Suppose that an economy consists of only two individuals. Trevor has $1150 available to spend on goods. He decides to purchase $210 worth of produce from Juanita in the current quarter. No other economic activity takes place during the current quarter. Using this information, answer the questions. For the current quarter, what is the economy's income? $ For the current quarter, what is the economy's expenditure? In an economy, how are income and expenditure related? Income is greater than expenditure. O Income is less than expenditure. They are unrelated. O They are equal.
If we want to calculate total spending in the economy, then we will include all of the following except: O spending by firms on new capital equipment spending by households on newly built houses government spending on new goods and services tax revenue collected by the government
1. Tbe economy's income and expenditure The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Markets for Goods and Services Firms Households Markets for Factors of Production Based on this model, households earn income when purchase in markets for factors of production. Suppose Megan earns $575 per week working as a d households Hedical Clinic. She uses $8 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Larry $325 per week to wash cars. Larry firms ourchase medical services from the Medical Clinic. Identify whether each of the following events in this scenario occurs in the market for factors of production or the market for goods and services. Market for Factors of Production Market for Goods and Event Services Megan earns $575 per week working for the Medical Clinic. Larry spends $225…
During 2019, a country reported that its real GDP increased by $3.0 billion. The multiplier for this economy is known to be equal to 10.Which of the following might have caused the increase in real GDP? Question 12Answer a. Exports increased by $0.3 billion. b. Investment decreased by $0.3 billion. c. Exports decreased by $0.3 billion. d. Imports increased by $0.3 billion. e. Government expenditure on goods and services increased by $3 billion.
C= R60 million I= R280 million Goverment= R310 million C = 0.75 1. Calculate the Autonomous expenditure 2. Calculate the Equilibrium level of income. 3. Draw a graph to illustrate the Equilibrium