Which of the following situations lead firms to increase production?
A) real GDP = $16.0 trillion and aggregate planned expenditures = $15.0 trillion
B) real GDP = $15.0 trillion and aggregate planned expenditures = $14.0 trillion
C) real GDP = $12.0 trillion and aggregate planned expenditures = $12.0 trillion
D) real GDP = $15.0 trillion and aggregate planned expenditures = $16.0 trillion
E) Both answers A and C are correct.
D
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One part of the explanation for the persistently high rates of unemployment in Western Europe is:
A. labor market rigidities. B. productivity growth. C. increases in labor supply. D. increases in labor demand.
Among the problems associated with subsidizing an industry in the hope of establishing a worldwide monopoly is that if two nations subsidize firms in the same industry, each could lose money
Indicate whether the statement is true or false
In a market characterized by a single seller and many buyers, a seller's investment to reduce transaction costs can lead to which of the following situations?
a. It can reduce producer surplus in the long run. b. It can raise the price paid by customers and still make them better off. c. It can decrease the brand value of the product. d. It can lower the quality of the product in the long run.
One way to describe the tax multiplier is that it equals the
a. the spending multiplier b. the negative of the spending multiplier minus1.0 c. the GNP gap minus the GDP gap d. the reciprocal of the marginal propensity to consume e. the best estimate of the optimal tax rate