Name: No.

Homework Econ 111 - Principles of Macroeconomics Economics Dept.

07 # Prof. Yousuf H. J. Garashi Kuwait University

1) Explain the difference between investment demand curve and

investment schedule?

2) Write the condition for the equilibrium GDP in a closed private economy?

3) Use the equilibrium GDP condition to prove that saving equals investment?

4) If Aggregate Expenditure is greater than GDP, then we expect:

(a) Unplanned changes in inventories to be: _______________

(b) Business will decide to: ____________________________
(c) Employment will : ________________________________
(d) Unemployment will: ______________________________
(e) GDP will: _______________________________________

5) At the equilibrium GDP, we have the following:

(a) Saving ______________ planned investment

(b) Unplanned changes in inventories are ______________
(c) Aggregate expenditures _______________ GDP
(d) Employment ______________________