Ignoring the government and foreign sectors, if planned investment spending is $500 billion, planned saving is $800 billion, and real Gross Domestic Product (GDP) is $13 trillion, then unplanned inventories will
A) decrease $300 billion.
B) increase $300 billion.
C) increase $800 billion.
D) not change.
Answer: B) increase $300 billion.
Economics
You might also like to view...
____________ is the extra usefulness or satisfaction that a person gets from acquiring one or more unit of a product.
a. marginal utility b. diminishing marginal utility c. income effect d. change in demand
Economics
Explain the reasons for the economic "miracle" of the East Asian countries between 1960 and 1997. Is it only because of the common Asian practice of industrial policy and business-government cooperation?
What will be an ideal response?
Economics