A Country Reports That When Real GDP Is $3

question 164

Multiple Choice

A country reports that when real GDP is $3.0 trillion, aggregate planned expenditure is $4.0 trillion.When real GDP equals $3.0 trillion,

• A) unplanned inventory changes by -$1.0 trillion.
• B) unplanned inventory changes by $1.0 trillion.
• C) planned inventory changes by $1.0 trillion.
• D) planned inventory changes by -$1.0 trillion.
• E) both planned and unplanned inventory changes are -$1.0 trillion.

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Definitions:

Imperfectly Competitive

A market structure where individual firms have some control over the price of their products due to a lack of perfect competition.

Market Price

The current price at which a good or service is bought and sold in a marketplace, determined by supply and demand dynamics.

Unit Of Output

The measure of the quantity of a product or service produced by a firm, industry, or economic sector.

Competitive Industry

An industry in which no single firm has the power to influence the price of its product; there are many sellers and buyers, and products are largely homogeneous.