EC112hw3

EC112hw3 - EC112 Homework#3 Chapters 11 and 12 Name H Eskot...

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EC112 H. Eskot Homework #3 Spring 2008 Chapters 11 and 12 Name: __ _________________________________ Please answer all of the following questions directly into the space provided on this home assignment sheet and return your completed answer sheet in class on Monday April 7 th in class. Your answers do not have to be lengthy; however, they should be returned in class and not sent through e-mail. 1. Into which category of aggregate expenditures would each of the following transactions fall? a. A consumer in Japan orders a computer online from Dell. __Net Exports______________ b. Prudential Insurance Company purchases 250 new computers from Dell. _Investment_________________ c. The city of Waltham orders 150 machine guns from Smith and Wesson for its police department. __Investment___________________ 2. What is the macroeconomics consequence if firms accumulate large amounts of unplanned inventories at the beginning of a recession? It typically means that aggregated expenditures is less than the GDP. Because of the
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This note was uploaded on 04/09/2008 for the course EC 112 taught by Professor Eskot during the Spring '08 term at Bentley.

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EC112hw3 - EC112 Homework#3 Chapters 11 and 12 Name H Eskot...

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