Question
a) True or False : If real GDP stands at $2,900, unplanned inventory investment is positive, and firms will increase output resulting in real GDP
a) True or False: If real GDP stands at $2,900, unplanned inventory investment is positive, and firms will increase output resulting in real GDP rising.
b) True or False: If real GDP stands at $1,000, unplanned inventory investment is equal to negative $400.
c) Suppose full employment level of real GDP occurs at $3,000, and the economy is currently at $2,000 level of real GDP (point E). If income multiplier equals 2.8, by what dollar value should AE planned (Autonomous consumption) increase (shift) to increase equilibrium E to full employment equilibrium E1, where RealGDP is at $3,000?
The dollar value = $ __________
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