The above table gives information for the nation of North Hampton. There are no imports to or exports from North Hampton
a. Find aggregate planned expenditure for each level of real GDP.
b. What is the equilibrium level of real GDP?
a. To calculate aggregate expenditure, for each level of real GDP sum consumption expenditure plus investment plus government purchases. The above table has the answers for each level of real GDP.
b. Equilibrium real GDP is $800 billion because that is the level of real GDP that equals aggregate planned expenditure.
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The four distinct tools of policy used by the Fed to influence the money supply are
A) interest rates, government spending, tax rates, and government transfer payments. B) open market operations, discount policy, reserve requirement policy, and adjusting interest on reserves. C) open market operations, adjusting the exchange rate of the dollar, government purchases, and reserve requirement policy. D) reserve requirement policy, discount policy, interest rates, and tax rates.
Once a monopoly has determined how much it produces, it will charge a price that
A) is determined by the intersection of the marginal cost and average total cost curves. B) minimizes marginal cost. C) is determined by its demand curve. D) is independent of the amount produced. E) is equal to its average total cost.