Refer to Figure 10.1. If the level of real GDP is initially Y3, spending is ________ production and there is an unexpected ________ in inventories
A) greater than; increase
B) greater than; decrease
C) less than; increase
D) less than; decrease
B
You might also like to view...
Which of the following would shift the investment demand curve rightward?
a. A decrease in business taxes. b. A tax credit for new investment. c. Firms move from unused capacity to full capacity. d. All of these.
How are the slope of a production possibilities frontier and the opportunity cost of the goods related?
a. The slope is a graphical representation of the cost of expanding production of both goods. b. The slope is a graphical measure of the growth rate of the economy. c. The slope is a graphical representation of the cost of decreasing unemployment. d. The slope is a graphical representation of the rate of trade-off between the goods. e. The slope is a graphical representation of the cost of economic growth in the economy.