Firms in a small economy planned that inventories would grow over the past year by $300,000. Over that year, inventories actually grew by $400,000. This implies that
A) aggregate expenditure that year was less than GDP that year.
B) aggregate expenditure that year was equal to GDP that year.
C) there was a planned decrease in inventories that year.
D) there was an unplanned decrease in inventories that year.
A
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The employment-to-population ratio is equal to the number of
A) unemployed people divided by the total population then multiplied by 100. B) employed people divided by the working-age population then multiplied by 100. C) employed people divided by the total population then multiplied by 100. D) unemployed people divided by the working age population then multiplied by 100.
What are price shocks? Why were they not included in the original formulation of the Phillips curve? Why were they added to the modern Phillips curve?
What will be an ideal response?