How will firms react when they discover that their actual investment is less than their intended investment? How will their reaction affect equilibrium national income?
This signals that their inventories unexpectedly fell, so they will be happy. They will respond by hiring
more resources in order to produce more output. With more workers producing goods and services and
earning incomes, national income will rise.
Economics
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At a price of P0 in the above figure, which of the following statements is FALSE?
A) Quantity demanded equals quantity supplied. B) There is an equilibrium in the market. C) P0 is the market clearing price. D) There is a surplus equal to Q0.
Economics
Which of the following may result in a higher equilibrium price for a product?
a. Advertising b. Expectations c. Imperfect information d. All of the above answers are true. e. None of the above answers a.-c. are true.
Economics