Use the Following to Answer Questions

question 198

Multiple Choice

Use the following to answer questions .
Exhibit: Aggregate Expenditures and Real GDP 1
-(Exhibit: Aggregate Expenditures and Real GDP 1) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment. Suppose AE = C + I_P, and I_P is autonomous. At a real GDP of $7,000 billion

• A) planned investment is greater than actual investment.
• B) planned investment equals actual investment.
• C) planned investment is less than actual investment.
• D) there will be no unplanned investment.

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Definitions:

Softwood Lumber

Timber from coniferous trees such as pine or spruce, often used in construction.

Domestic Supply

The total amount of a product or service produced within a country, available for consumption or export within its borders.

Domestic Demand

The total demand for goods and services within a country, excluding external trade.

World Price

The price at which goods are traded internationally, determining how much a product costs across different countries.