a) Suppose output is K. What is the level of planned aggregate expenditure? Is planned expenditure greater or less than output?

If output is K, planned expenditure would be ........ Planned expenditure would be (Select one) (greater/less) than current output.

b) What is the size of the unplanned change in inventories at output K.

The (Select one) (Unplanned increase/Unplanned decrease) in inventories amounts to ......

c) How will business firms respond to this situation?

Business firms will respond by (Select one) Increasing/Decreasing output.

d) What is the equilibrium income and expenditure?

Equilibrium level of output and expenditure = .......

e) Suppose output is at J, is there an unplanned change in inventories? By how much?

There would be (Select one) (Unplanned increase/Unplanned decrease) in inventories in the amount .

The following diagram shows the aggregate expenditure schedule for the economy and the equilibrium condition on the 45 degree line. Round all answers to the nearest whole number. (36, 34) 287 4 20-D AE C +1+ X -IM 167 12 Y = AE K H J 12 15 18 21 24 27 30 33 36 39 Real GDP and IncomeThe market inverse demand curve is P(y) = 10 - 2y, and a monopolist's cost curve is y' + 2. (a) What output level y maximizes the monopolist's revenue? What output level y maximizes the monopolist's profit? Identify which of the two output levels is lower, and explain why using economic intuition. (b) Suppose a second firm with cost curve y' + 2 is considering entering the market. If after entry, the firms would compete a la Cournot, what would be the Cournot- Nash equilibrium output levels y and y2 of firms 1 and 2? What would be the equilibrium profits for each firm? Will firm 2 choose to enter the market? (c) Suppose that if firm 2 enters, both firms collude, choosing output levels that maxi- mize total profits and then split the profits equally between them. What would be the profits to each firm? Will firm 2 choose to enter the market in this case?Question 84 (1 point) In the aftermath of the global financial crisis, it is generally accepted that record on Wall Street played a significant role. ( 1) high levels of leverage O 2) low levels of liabilities 3) low levels of leverage 4) government intervention ( 5) high levels of liabilitiesQuestion 83 (1 point) The curves are both vertical. ( 1) short-run aggregate supply and short-run Phillips 2) money demand and short-run aggregate supply 3) long-run aggregate supply and short-run Phillips (4) long-run aggregate supply and long-run Phillips 5) aggregate demand and short-run Phillips