Unplanned inventory decreases:
a. tend to result in an decrease in income
b. tend to result in an increase in real output.
c. tend to further reduce production.
d. signal that demand was weaker than expected.
b
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The exercise of market power by suppliers in resource markets tends to:
A. reduce income inequality ensuring that all workers receive fair wages. B. have little impact on the distribution of income. C. increase income inequality by raising incomes of those able to "rig the market." D. increase income inequality but is offset by the exercise of market power in product markets.
If people's real assets increase, then the:
A. economy will move to the right along the existing consumption function. B. economy will move to the left along the existing consumption function. C. consumption function will shift down. D. consumption function will shift up.