Suppose planned expenditures exceed output. Explain how equilibrium is restored in this economy
What will be an ideal response?
When planned expenditures exceed output, firms find that the demand for consumption and investment goods is greater than their current production. Facing increasing backlogs of orders for their products, firms increase production to restore equilibrium in the economy.
Economics
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The Cambridge and Fischer versions of the quantity theory are identical if
a. V = k.. b. V=k2. c. V= 1/k. d. none of the above.
Economics
Which of the following is true of squared forecast errors?
A. An error of +2 yields a greater loss than an error of ?2. B. An error of ?2 yields a greater loss than an error of +2. C. An error of ?2 or +2 yields the same loss. D. Loss from positive and negative forecast errors cannot be compared.
Economics