When companies reduce their inventories
A. the amount of the change gets subtracted from the GDP.
B. the amount of the change has no effect on the GDP.
C. net exports go up.
D. the amount of the change gets added to the GDP.
Answer: A
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In an oligopoly, producers' agreements to restrict output tend to be unstable because each firm has an incentive to:
A. Produce more than its output quota B. Lower both its price and its output C. Raise its price above the cooperative price D. Establish competitive price and output levels
When the value of the dollar increases, the net effect on the economy
A. will be an increase in both aggregate demand and aggregate supply. B. will be decrease in short-run aggregate supply and an increase in aggregate demand. C. will be an increase in short-run aggregate supply and a decrease in aggregate demand. D. will be a decrease in both aggregate demand and aggregate supply.