Table 13-2 -Refer to Table 13-2. Consider a Simple Economy That Is

question 160

Multiple Choice

Table 13-2

-Refer to Table 13-2. Consider a simple economy that is made up of only two sectors, households and firms, and that investment is autonomous. Further, disposable personal income = real GDP. Suppose that actual real GDP in this economy is $500 billion in a particular period. We would expect to see

• A) unintended reductions in inventory, planned investment will exceed actual investment.
• B) unintended reductions in inventory, planned investment will be less than actual investment.
• C) unintended increases in inventory, planned investment will exceed actual investment.
• D) unintended increases in inventory, planned investment will be less than actual investment.

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Definitions:

Medial Margin

The edge or boundary closest to the midline of the body or a body part.

Stomach

A muscular organ in the digestive system that processes food by mixing it with digestive juices and enzymes.

Curvature

The degree of bend or deviation from straightness or flatness in a line, object, or surface.

Lingual Frenulum

A fold of mucous membrane located under the tongue, which assists in the mobility and positioning of the tongue.