When aggregate planned expenditure exceeds real GDP,
A) an unplanned increase in inventories occurs.
B) real GDP remains at its equilibrium level.
C) firms decrease production.
D) an unplanned decrease in inventories occurs.
E) real GDP decreases.
D
Economics
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Gilligan runs the only dry-cleaning business on a desert isle. If the cost of cleaning fluid falls, he can increase profit by
a. raising price b. charging the highest price he can c. using less cleaning fluid d. lowering price e. charging a price equal to marginal cost
Economics
There will be an increase in supply when
A) a consumer's income increases. B) there is an improvement in technology. C) the demand curve shifts. D) the market price rises from $3 to $4.
Economics