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3 years ago

If aggregate planned expenditures in the economy increase by $100 million, then real GDP will _____ $100 million.

Business

1 answer:

nirvana33 [79]3 years ago

6 0

Answer:

Real GDP will rise by $100 million

Explanation:

Aggregate Demand [AD] is total amount of goods & services, all sectors of an economy are planning to buy . So AD = Aggregate Planned Expenditure [APE]

Aggregate Supply [AS] is total amount of goods & services, all sellers are planning to sell. As total output value of goods & services produced is distributed among factors of production, AS = National Income [NY] = GDP

At equilibrium : AD or APE = AS or NY or GDP

If AD or APE increases by $100 million :

AD or APE > AS or Aggregate Planned Production or GDP . This implies willingess to buy > willingness to produce. So, inventory levels will fall below desired level. To mantain inventory level, production [AS] & income level [GDP] will rise till it becomes equal to risen AD or APE

So, GDP will also rise by $100 million

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3 years ago

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mezya [45]

Answer:

The examples of the given circumstances are provided below.

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3 years ago

Which of the following is true of grapevine communication? a. It has a reputation for being speedy but inaccurate. b. It passes

Tomtit [17]

Answer:

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Explanation:

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4 years ago

Read 2 more answers

Angler Manufacturing makes fishing poles and sells them for $30 each. The firm’s variable costs are $12 per unit, and its total

Zigmanuir [339]

Answer:

3,600 units

Explanation:

Given:

Selling price per unit = $30

Variable cost per unit = $12

Contribution per unit = Selling price - variable cost

= 30 - 12

= $18 per unit

Fixed cost = $54,000

Increase in fixed cost this year = 54,000 × 1.2 = $64,800

Break even point in units = Fixed cost / contribution margin

Since only fixed cost increase and selling price and variable cost remain same, contribution margin will be $18 per unit

Break even point in units = 64,800 / 18

= 3,600 units

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4 years ago

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Korolek [52]

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3 years ago