If Planned Expenditures Equal $13 Trillion When Real GDP Is

question 412

Multiple Choice

If planned expenditures equal $13 trillion when real GDP is $13.5 trillion,then

• A) inventories will decrease by $0.5 trillion.
• B) actual investment will exceed planned investment.
• C) there will be excess demand for most goods.
• D) the economy must have a trade surplus to sell the excess goods and services.

Realize the differences between acquired and natural comparative advantages.

Comprehend the significance of factor endowments in explaining trade flows according to the Heckscher-Ohlin theorem.

Identify how differences in opportunity costs between countries lead to mutual benefits from trade.

Understand the concept of terms of trade and its importance in international exchanges.

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