In the short run with predetermined prices, when output is greater than planned aggregate expenditure, firms will: increase potential output reduce production increase planned aggregate expenditure decrease planned aggregate expenditure increase production
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- Suppose the order-up-to model is used to manage inventories. The firm is planning changesthat will reduce the lead time to receive replenishments because the firm anticipates thatthe coefficient of variation of demand will increase even though mean demand per periodremains the same. What can be said about the likely change in the firm’s on-order inventory? a. It will surely decrease.b. It will remain the same.c. It will surely increase.d. More information is needed to determine the impact of these changes10. Great Depression In 1939, with the U.S. economy not yet fully recovered from the Great Depression, President Roosevelt proclaimed that Thanksgiving would fall a week earlier than usual so that the shopping period before Christmas would be longer. Graph A Graph B LRAS Aggregate Supply Aggregate Demand Price Level LRAS Quantity of Output Price Level Aggregate Supply Aggregate Demand Quantity of OutputWhich would best explain an economy with rising prices and greater production and spending? O higher transfer payments lower costs for businesses O higher costs for businesses lower transfer payments
- 3:35 PM O ll al a 59 % f H.W2.pdf Sx. The mantaly conumpthie Values for rice are Use below:- July Sept. Oct. Nov. June Aug. 28.65 7.85 13.45 21.60 24.30 14.70 Cm Cm Cm Cm Cm Determin the seasonal The consumptive use, The average montaly Consumptive use and average dzily comsumptive use, the beak monthly consumptive use.Assume an economy operates in the intermediaterange of its aggregate supply curve. State thedirection of shift for the aggregate demandor aggregate supply curve for each of thefollowing changes in conditions. What is theeffect on the price level? On real GDP? Onemployment?a. The price of crude oil rises significantly.b. Spending on national defense doubles.c. The costs of imported goods increase.d. An improvement in technology raises laborproductivity.Match each definition to the appropriate component of aggregate demand. Definition The sum of the expenditures of business firms on new plant, equipment, and software and of households on new homes The goods and services purchased by all levels of government The total amount spent by consumers on newly produced goods and services The difference between exports and imports ⒸNet exports O Government spending Consumer Expenditure Which of the following components represents the largest piece of aggregate demand? O Consumer expenditure O Investment spending O Which of the following components represents the smallest piece of aggregate demand? O Consumer expenditure O Government spending O Investment spending ONet exports Investment Spending Government Spending Net Exports O O O O
- Refer to the dlagram glven below. Consumption Income The diagram given above shows consumptlon schedules. As Income rises, the marginal propensity to consume remains constant for. Multiple Cholce only C3- O only C. C2, ano C3. none of the consumption schedules. Drov 17ot 72 Nextv Question Completion Status: A Moving to another question will save this response. Quèstion 4 Assume the economy's consumption and saving schedules simultaneously shift downward. This must be the result of: O A. The expectation of a recession O B. An increase in household wealth. O C. An increase in personal taxes. O D. An increase in disposable income. Moving to another question will save this response. SHARP AQUOSConsumption expenditures in the U.S. usually account for approximately 40 O 50 O 60 O 70 80 percent of GDP.
- In the following scenario, identify the correct sequence of events. If there is a $1 decrease in autonomous spending, the equilibrium output decreases by more than $1. This is because, a decrease in spending leads to O run down in inventories, decrease in production, less income, less spending O accumulation of inventories, decrease in production, less income, less spending O less output, change in planned investment and consumption O lower spending, lower consumption O lower income, lower planned investmentciples of Macroeconomics || Fall20 1 What does the PPI measure? ed Select one: d out of O a the average change in the prices paid for all goods produced in the economy over a given year O b. the level of production of goods and services generated in the economy in a given year question O c. the difference between the prices consumers pay for goods and services and the prices producers pay for O d. the average of the prices received by producers of goods and services at all stages of the production pro Ti navigation Type here to searchHow do i trace this scenario on the circlar flow model, firms inventories unexpectedely rise?