The above table gives data for the nation of Mouseville. There are no imports into or exports from Mouseville. Aggregate planned expenditure is less than actual expenditure if real GDP is
A) less than $700 billion.
B) more than $800 billion.
C) $800 billion.
D) less than $800 billion.
E) more than $700 billion.
B
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Xanfix sells wrenches and screwdrivers. It sells both products at the same price of $9.66 per unit. The firm calculates that the income elasticity of demand for wrenches is 1.5, while the income elasticity of demand for screwdrivers is 2.5 . If the overall consumer income is expected to increase by 6.8 percent in the year ahead, the company should: a. increase the production of both products,
but it should increase the production of screwdrivers by a greater amount than the production of wrenches. b. increase the production of both products, but it should increase the production of wrenches by a greater amount than the production of screwdrivers. c. increase the production of wrenches and decrease the production of screwdrivers. d. increase the production of screwdrivers and decrease the production of wrenches.
The U.S. dollar exchange rate, e, where e is the nominal exchange rate expressed as Japanese yen per U.S. dollar, will appreciate when:
A. U.S. consumers increase their preference for Japanese cars. B. the Bank of Japan tightens monetary policy. C. real GDP in the U.S. increases. D. the U.S. Federal Reserve tightens monetary policy.