Why might the actual investment spending found in Y be different than planned investment spending found...
Why might the actual investment spending found in Y be different than planned investment spending found in AE?
Homework Answers
Actual investment spending is different from planned investment spending in the sense that there is unplanned inventory changes that occur over the period of time. Planned investment spending is basically the proposed investment made by firms during a particular period, which is based on the expectation regarding profit, economic opportunities and consumption. In real world however, actual investment may turn out to be different because of some unplanned inventory changes.
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Why might the actual investment spending found in Y be different
than planned investment spending found...
1) If Inventory investment is higher than firms planned, a) actual investment is greater than planned...
1) If Inventory investment is higher than firms planned, a) actual investment is greater than planned investment. b) actual investment is less than planned investment. c) actual investment must be negative. d) actual and planned investment are equal. Refer to the information provided in Figure 8.8 below to answer the questions that follow. Figure 8.8 2) Refer to Figure 8.8. The amount of planned investment decreases if the interest rate a) rises from 4% to 8%. b) remains at 8%....
Consumption spending in a country is represented by C = 1800+ 0.8(Y-T ). Planned investment is...
Consumption spending in a country is represented by C = 1800+ 0.8(Y-T ). Planned investment is 900, government purchases G = 0, net exports NX = 100 and T = 0.2Y. Write down planned aggregate spending of the economy as a function of Y. Zero points if you do not show your work. (3) An important trading partner of the country goes through a major recession, decreasing the country’s net exports by $500. Use the Keynesian AE model to analyze...
Consumption spending in a country is represented by C = 1800+ 0.8(Y-T). Planned investment is 900,...
Consumption spending in a country is represented by C = 1800+ 0.8(Y-T). Planned investment is 900, government purchases G = 0, net exports NX = 100 and T = 0.2Y. 1. Write down planned aggregate spending of the economy as a function of Y. Zero points if you do not show your work. (3) 2. An important trading partner of the country goes through a major recession, decreasing the country's net exports by $500. Ure the Keynesian AE model to...
An unplanned increase in inventories results from O actual investment that is greater than planned investment....
An unplanned increase in inventories results from O actual investment that is greater than planned investment. O an increase in planned investment. O actual investment that is less than planned investment. O a decrease in planned investment.
If the consumption function is C = 100+ 0.90 Y and planned investment spending is 400,...
If the consumption function is C = 100+ 0.90 Y and planned investment spending is 400, what will be the equilibrium level of output? Y.-$ (Enter your response as an integer.)
QUESTION 37 3 points Save Answer Which accurately describes unplanned investment spending? Choose all that apply...
QUESTION 37 3 points Save Answer Which accurately describes unplanned investment spending? Choose all that apply GDP Aggregate Planned Spending planned investment+ actual investment actual Investment change in inventory actual investment- planned investment QUESTION 38 3 points Save Answer Positive unplanned inventory investment occurs when actual depreciation is less than expected depreciation actual output is less than sales. actual output (V) is less than the equilibrium level of real GOP (Y actual output is greater than sales
Q2. In the Keynesian cross model, equilibrium in the economy is obtained where planned spending equals...
Q2. In the Keynesian cross model, equilibrium in the economy is obtained where planned spending equals actual spending. (a) Explain what planned spending and actual spending are (b) Graphically present the equilibrium condition of the economy in the Keynesian cross model. (c) Explain how the economy adjusts to equilibrium if the economy finds itself with a level of planned spending which is less than actual spending (3 marks) (d) Explain why an increase in government spending leads to a greater...
Consumption spending is $5 million, planned investment spending is $8 million, unplanned investment spending is $2 mi...
Consumption spending is $5 million, planned investment spending is $8 million, unplanned investment spending is $2 million, government purchases are $10 million, and net export spending is $2 million. What is GDP? The answer is 27 million can someone show how they got it
Suppose consumption is given by: C=100+0.5(Y-T), planned investment is 200, government spending is 100, and the...
Suppose consumption is given by: C=100+0.5(Y-T), planned investment is 200, government spending is 100, and the government is running a balanced budget. The tax multiplier is:
Which of the following statements is true? O A. Both actual investment and planned investment include...
Which of the following statements is true? O A. Both actual investment and planned investment include unplanned inventory changes. O B. Neither actual investment nor planned investment include unplanned inventory changes. O C. Planned investment includes unplanned inventory changes but actual investment does not. O D. Actual investment includes unplanned inventory changes but planned investment does not.
Consumption spending in a country is represented by C = 1800+ 0.8(Y-T). Planned investment is 900, government purchases G = 0, net exports NX = 100 and T = 0.2Y. 1. Write down planned aggregate spending of the economy as a function of Y. Zero points if you do not show your work. (3) 2. An important trading partner of the country goes through a major recession, decreasing the country's net exports by $500. Ure the Keynesian AE model to...
An unplanned increase in inventories results from O actual investment that is greater than planned investment. O an increase in planned investment. O actual investment that is less than planned investment. O a decrease in planned investment.
If the consumption function is C = 100+ 0.90 Y and planned investment spending is 400, what will be the equilibrium level of output? Y.-$ (Enter your response as an integer.)
QUESTION 37 3 points Save Answer Which accurately describes unplanned investment spending? Choose all that apply GDP Aggregate Planned Spending planned investment+ actual investment actual Investment change in inventory actual investment- planned investment QUESTION 38 3 points Save Answer Positive unplanned inventory investment occurs when actual depreciation is less than expected depreciation actual output is less than sales. actual output (V) is less than the equilibrium level of real GOP (Y actual output is greater than sales
Suppose consumption is given by: C=100+0.5(Y-T), planned investment is 200, government spending is 100, and the government is running a balanced budget. The tax multiplier is:
Which of the following statements is true? O A. Both actual investment and planned investment include unplanned inventory changes. O B. Neither actual investment nor planned investment include unplanned inventory changes. O C. Planned investment includes unplanned inventory changes but actual investment does not. O D. Actual investment includes unplanned inventory changes but planned investment does not.
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