If real gdp exceeds aggregate expenditures the

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Chapter 20 / Exercise 3
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228.If real GDP exceeds aggregate expenditures, the economy will:A)contract, reducing employment.B)expand, causing inflation.C)expand, increasing employment.D)neither contract nor expand, holding employment constant.
229.If aggregate expenditures exceed real GDP, the economy will:
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Chapter 20 / Exercise 3
Exploring Economics
Sexton
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Use the following to answer questions 230-231:Figure: Aggregate Expenditures I230.(Figure: Aggregate Expenditures I) Look at the figure Aggregate Expenditures I. The equilibrium real GDP is:
231.(Figure: Aggregate Expenditures I) Look at the figure Aggregate Expenditures I. When real GDP is $700 billion, there will be a _____ in unplanned inventory investment.
232.If real GDP is less than aggregate expenditure, then inventories will _____, and firms will_____.A)increase; cut back on future productionB)fall; increase the prices of their productsC)increase; lower their product pricesD)fall; increase their future production
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233.If real GDP is $1,000 billion and the aggregate expenditure is $850 billion, then the change in inventories will be:
234.When the economy is in income–expenditure equilibrium:
235.The Federal Reserve, the central bank of the United States, has been cutting the interest rate to stimulate the recessionary economy. Interest cuts by the Federal Reserve are supposed to:
236.If the slope of the aggregate expenditures curve is 0.8, the multiplier is:A)1.B)4.C)5.D)infinity.
237.If the slope of the aggregate expenditures curve is 0.9, the multiplier is:
238.If the slope of the aggregate expenditures curve is 0.75, the multiplier is:
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