The table above gives data for the nation of Mosh. If real GDP is $6 trillion, then
A) firms increase production because inventories are less than their target levels.
B) the economy has reached equilibrium and no change in production will occur.
C) firms increase production because inventories exceed their target levels.
D) firms decrease production because inventories exceed their target levels.
E) We need more information to determine whether firms increase, decrease, or do not change their production.
A
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The following are obstacles to international investment EXCEPT
A) population growth. B) asymmetric information. C) adverse selection. D) moral hazard.
Because in any period of time and in any region the quantity of pollutants that can be absorbed by nature is fixed, the supply of "pollution rights" in a cap-and-trade system will be perfectly elastic (horizontal).
a. true b. false