In the aggregate expenditures model, if an economy operates above equilibrium GDP, there will be:
a. unplanned inventory depletion.
b. an increase in GDP.
c. a decrease in employment.
d. an increase in employment.
c
Economics
You might also like to view...
Everything else being constant, a lower real interest rate
A) increases desired saving and net exports. B) decreases desired saving but increases net exports. C) increases desired saving and investment. D) increases desired investment but decreases net exports.
Economics
Without government intervention, society is likely to get too much production of: i. private goods that generate external costs ii. private goods that generate external benefits iii. public goods
a. (i) only b. (ii) only c. (iii) only d. both (ii) and (iii)
Economics