If aggregate expenditure is less than GDP, how will the economy reach macroeconomic equilibrium?
A) Inventories will decline, and GDP and employment will decline.
B) Inventories will rise, and GDP and employment will rise.
C) Inventories will decline, and GDP and employment will rise.
D) Inventories will rise, and GDP and employment will decline.
D
Economics
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The demand curve
A. Is a graphical representation of the relationship between price and quantity demanded. B. Determines equilibrium price in a market. C. Depicts the relationship between production costs and output. D. Is a graphical representation of the relationship between price and quantity supplied
Economics
An economic variable that doesn't move in a consistent pattern with aggregate economic activity is called
A) procyclical. B) countercyclical. C) acyclical. D) a leading variable.
Economics