Chapter 11 PQ

Chapter 11 PQ - Exam Name_ MULTIPLE CHOICE. Choose the one...

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question 1) An unplanned increase in inventories results in A) actual investment that is less than planned investment. B) an increase in planned investment. C) a decrease in planned investment. D) actual investment that is greater than planned investment. 1) 2) Consumption is $5 million, planned investment spending is $8 million, government purchases are $10 million, and net exports are equal to $2 million. If GDP during that same time period is equal to $27 million, what unplanned changes in inventories occurred? A) There was an unplanned investment in inventories equal to $2 million. B) There was an unplanned decrease in inventory investment equal to $2 million. C) There was no unplanned investment in inventories. D) There was an unplanned decrease in inventory investment equal to $19 million. 2) 3) If firms sell what they expected to sell, which of the following will be true? A) Inventories will rise, and GDP and employment will fall.
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Chapter 11 PQ - Exam Name_ MULTIPLE CHOICE. Choose the one...

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