If the economy is on the aggregate supply curve but to the right of the aggregate demand curve, which of the following will be the first market force to lead the economy toward an equilibrium?
a. At the current output level, prices will be too low and firms will increase their prices.
b. At the current price level, output will be too low, inventories will diminish, and firms will increase their production.
c. At the current output level, prices will be too low and firms will lower their prices.
d. At the current price level, output will be too high and so prices will drop so that output will drop.
e. At the current price level, output will be too high, inventories will pile up and firms will cut back on their production.
E
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________ save a ________ of their income. This ________ capital in their economy and raises economic growth
A) High-income countries; large proportion; increases B) Developing countries; large proportion; decreases C) High-income countries; small proportion; increases D) Developing countries; small proportion; increases
Has world trade increased continually over the 60 years?
What will be an ideal response?