In the chapter we explained the difference between desired expenditures and actual expenditures. a. Is national income

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In the chapter we explained the difference between desired expenditures and actual expenditures.

a. Is national income accounting based on desired or actual expenditures? Explain.

b. Suppose there were a sudden decrease in desired consumption expenditure. Explain why this would likely be followed by an equally sudden increase in actual investment in inventories.

c. Illustrate the event from part

(b) in a $45^{\circ}$-line diagram.

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Macroeconomics

ISBN: 9780133910445

15th Edition

Authors: Christopher T S Ragan

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Question Posted: Mar 14, 2024 12:00 PM

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In the chapter we explained the difference between desired expenditures and actual expenditures. a. Is national income

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Macroeconomics

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