Use the figure above to answer this question. At a price level of 90
A) people will be forced to cut consumption so that aggregate demand will decrease.
B) the aggregate quantity demanded exceeds real GDP and inventories will decrease.
C) inventories increase and firms will increase production.
D) the aggregate quantity demanded exceeds real GDP, inventories increase and the price level will rise.
B
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Spencer and Brander's model highlights the existence of
A) aircraft industries. B) excess returns present in highly competitive markets. C) excess returns, or rents, available in non-competitive markets. D) the futility of government bureaucrats' attempts to build an airplane. E) natural advantages in foreign technology firms.
Which of the following is not an economic investment?
A) construction of a housing project for the homeless B) the increase in the inventory on a grocer's shelf C) the purchase of machinery by ABC Manufacturing Company D)the purchase of 50 shares of Aliant by a retired business executive