4. Answer the following questions based on the table Point Real C I GX GDP 300 400 500 A B C M AE 230 50 60 60 45 290 50 60 60 60 350 50 60 60 75 Unplanned inventory changes a. Complete the table. b. Plot the AE curve and show where inventory is building up and depleting c. Explain why there are unplanned inventory changes. d. If the economy is at point A or C, what will it do to reach the equilibrium If the pris (b)

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter19: The Macroeconomic Perspective
Section: Chapter Questions
Problem 4SCQ: Without looking at Table 19.7, return to Figure 19.10. If we define a recession as a significant...
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4. Answer the following questions based on the table
Point Real
C
I
GX
GDP
300
400
500
a.
b.
5. If the
A
B
C
M
230
50
60
60
45
290 50 60
60
60
350 50 60 60 75
Complete the table.
Plot the AE curve and show where inventory is building up and depleting
Explain why there are unplanned inventory changes.
c.
d. If the economy is at point A or C, what will it do to reach the equilibrium
AE
Unplanned inventory
changes
Transcribed Image Text:the 4. Answer the following questions based on the table Point Real C I GX GDP 300 400 500 a. b. 5. If the A B C M 230 50 60 60 45 290 50 60 60 60 350 50 60 60 75 Complete the table. Plot the AE curve and show where inventory is building up and depleting Explain why there are unplanned inventory changes. c. d. If the economy is at point A or C, what will it do to reach the equilibrium AE Unplanned inventory changes
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