If firms find that consumers are purchasing more than expected, which of the following would you expect?
A) The economy will adjust to macroeconomic equilibrium as inventories fall, and production and employment fall.
B) Aggregate expenditure will likely be greater than GDP.
C) Aggregate expenditure will likely be less than GDP.
D) The economy will adjust to macroeconomic equilibrium as inventories rise, and production and employment fall.
B
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In the long run, international trade allows a monopolistically competitive firm an opportunity:
a. to produce more output and earn monopoly profits. b. to produce less output and earn monopoly profits. c. to produce more output and reduce its average costs. d. to produce less output and increase its average costs.
Which of the following equations shows how much X dollars will be worth if invested at an annual interest rate i for t years, if interest is compounded annually?
A. (1 + i) t X B. X/(1 + i) t C. (1 + X)i t D. (X + i)