Refer to the Information Provided in Table 23

question 131

Multiple Choice

Refer to the information provided in Table 23.9 below to answer the question(s) that follow.
Table 23.9
-Refer to Table 23.9. At an aggregate output level of $300 billion, the unplanned inventory change is

• A) -$40 billion.
• B) -$10 billion.
• C) $0.
• D) $10 billion.

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Definitions:

Income Effect

Variations in the income levels of individuals or economies and the resultant effects on the demand for goods or services.

Substitution Effect

The economic understanding that as prices rise or incomes decrease consumers will replace more expensive items with less costly alternatives.

Hourly Wages

The amount of earnings paid to an employee for each hour worked.

Fringe Benefits

Additional benefits, beyond a salary, offered to employees, such as health insurance, retirement plans, and paid time off.