Ignoring the government and foreign sectors, if planned investment spending is $50 billion, planned saving is $70 billion, and real Gross Domestic Product (GDP) is $200 billion, then unplanned inventories will

One of the chief advantages of exchange rate pegging is that ________

A) a country is able to pursue an independent monetary policy over the course of the business cycle B) it can be an effective means of reducing inflation C) the currency can be used to promote export growth D) it allows the monetary authorities to actively respond to the problems of inflation and unemployment

A change in the price of a good causes

A) an increase in supply. B) a decrease in supply. C) an increase in demand and a decrease in supply. D) a change in quantity supplied.