What is unplanned investment? How does it occur?
What will be an ideal response?
Unplanned investment occurs when inventories grow larger than planned. The difference between the actual change in inventories and the planned change is unplanned investment. Unplanned investment occurs when aggregate planned expenditure is less than real GDP so firms sell less output than they had planned.
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An externality refers to an economic event which takes place outside of a market
Indicate whether the statement is true or false
The basic idea behind an auction is that:
A) buyers want to buy from the sellers with the lowest ask prices, and sellers want to sell to buyers with the highest bid prices. B) buyers want to buy from the sellers with the highest ask prices, and sellers want to sell to buyers with the highest bid prices. C) buyers want to buy from the sellers with the highest ask prices, and sellers want to sell to buyers with the lowest bid prices. D) buyers want to buy from the sellers with the lowest ask prices, and sellers want to sell to buyers with the lowest bid prices.