If total spending is less than total output, then price levels will
a. rise and output will increase.
b. rise and output will decrease.
c. fall and output will increase.
d. fall and output will decrease.
d
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The opportunity cost of an item is
a. the number of hours needed to earn money to buy the item. b. what you give up to get that item. c. usually less than the dollar value of the item. d. the dollar value of the item.
Which of the following is the best theoretical explanation for why strikes occur?
A. The union and firm know that it is impossible to eventually negotiate an outcome on the contract curve. B. The firm has a downward-sloped resistance curve. C. The firm wants to minimize labor costs. D. The union's leadership wants to please management. E. The union does not know how valuable labor is to the firm.