If aggregate expenditure is greater than GDP, how will the economy reach macroeconomic equilibrium?
A) Inventories will rise, and GDP and employment will rise.
B) Inventories will decline, and GDP and employment will rise.
C) Inventories will rise, and GDP and employment will decline.
D) Inventories will decline, and GDP and employment will decline.
B
Economics
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If supply is elastic, the supply curve is relatively ________, and if demand is elastic, the demand curve is relatively ________
A) flat; flat B) flat; steep C) steep; flat D) steep; steep
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Which of the following believe that discretionary monetary policy and discretionary fiscal policy are effective countercyclical policy actions? activists
a. rule advocates b. activists c. new classical economists d. rational expectations theorists
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