College

Thank you for visiting 4 What are the characteristics of a Complete the following table and then answer questions 5 8 The first two rows are to prepare for. This page is designed to guide you through key points and clear explanations related to the topic at hand. We aim to make your learning experience smooth, insightful, and informative. Dive in and discover the answers you're looking for!

4. What are the characteristics of a...?

Complete the following table and then answer questions 5-8. The first two rows are to prepare for question #5.

5. If investment is [tex]$\$ 1$ trillion[/tex], government spending is [tex]$1$ trillion[/tex], and net exports are [tex]$-\$ 0.1$ trillion[/tex], then what is equilibrium GDP?

6. If equilibrium GDP is [tex]$3.0$ trillion[/tex], then what is the total of investment, government spending, and net exports?

7. If investment is [tex]$\$ 1$ trillion[/tex], government spending is [tex]$1$ trillion[/tex], net exports are [tex]$-\$ 0.1$ trillion[/tex], and GDP is [tex]$2.0$ trillion[/tex], then is there inventory depletion or inventory accumulation, and by what amount?

8. If investment is [tex]$\$ 1$ trillion[/tex], government spending is [tex]$1$ trillion[/tex], net exports are [tex]$-\$ 0.1$ trillion[/tex], and GDP is [tex]$2.0$ trillion[/tex], what will GDP do?

Answer :

Let's work through each question step-by-step using the given information:

### Question 5
If investment is [tex]$1 trillion, government spending is $[/tex]1 trillion, and net exports are -[tex]$0.1 trillion, then what is equilibrium GDP?

To find equilibrium GDP, we need to add up investment, government spending, and net exports:

- Investment = $[/tex]1 trillion
- Government spending = [tex]$1 trillion
- Net exports = -$[/tex]0.1 trillion

Total = Investment + Government spending + Net exports = [tex]$1 + $[/tex]1 - [tex]$0.1 = $[/tex]1.9 trillion

Thus, the equilibrium GDP is [tex]$1.9 trillion.

### Question 6
If equilibrium GDP is $[/tex]3.0 trillion, then what is the total of investment, government spending, and net exports?

From the information given, the equilibrium GDP is already provided as [tex]$3.0 trillion. This implies that when equilibrium GDP is equaled to spending, it remains at this level because total spending matches this amount, but in this case since actual calculation shows $[/tex]1.9 trillion, the information provided seem off.

### Question 7
If investment is [tex]$1 trillion, government spending is $[/tex]1 trillion, net exports are -[tex]$0.1 trillion, and GDP is $[/tex]2.0 trillion, then is there inventory depletion or inventory accumulation and by what amount?

First, calculate the total spending:

- Total spending = [tex]$1 + $[/tex]1 - [tex]$0.1 = $[/tex]1.9 trillion

Compare this with the GDP provided:

- GDP = [tex]$2.0 trillion

Inventory Change = Total Spending - GDP = $[/tex]1.9 - [tex]$2.0 = -$[/tex]0.1 trillion

A negative inventory change indicates an inventory depletion. So, there is an inventory depletion of [tex]$0.1 trillion.

### Question 8
If investment is $[/tex]1 trillion, government spending is [tex]$1 trillion, net exports are -$[/tex]0.1 trillion, and GDP is [tex]$2.0 trillion, what will GDP do?

Previously, we found that there is an inventory depletion of $[/tex]0.1 trillion because total spending is less than the GDP.

When there is inventory depletion, GDP will typically increase in the future to meet the demand that exceeds current production.

Therefore, GDP will increase.

Thank you for reading the article 4 What are the characteristics of a Complete the following table and then answer questions 5 8 The first two rows are to prepare for. We hope the information provided is useful and helps you understand this topic better. Feel free to explore more helpful content on our website!

Rewritten by : Jeany