When real GDP exceeds aggregate planned expenditure
A) an unplanned increase in inventories occurs.
B) real GDP remains at its equilibrium.
C) real GDP increases.
D) firms increase production.
E) an unplanned decrease in inventories occurs.
A
Economics
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The time-inconsistency problem involves the ________
A) difficulties of traveling across time zones B) tendency to deviate from good long-run plans in the short-run C) use of adaptive expectations in building an economic model D) time lag between the implementation of policy and its ultimate and complete results
Economics
The fixed-cost fallacy occurs when
a. A firm considers irrelevant costs b. A firm ignores relevant costs c. A firm considers overhead or depreciation costs to make short-run decisions d. Both a and c
Economics