If firms sell exactly what they expected to sell, all of the following will be true except
A) aggregate expenditure will be greater than GDP.
B) there is no unplanned change in inventories.
C) aggregate expenditure will be equal to GDP.
D) inventories will not change, and GDP and employment will remain stable.
A
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Explain the effects of a tariff on domestic production, the quantity bought, and the price
What will be an ideal response?
Refer to the above table. The overall balance of payments of Nation "A" is
A) +85. B) - 85. C) 0. D) +25.
Consider an economy that only produces steel and shoes; steel is capital intensive and shoes are labor intensive. How will emigration of labor from this economy affect the marginal productivity of labor?
a. It will fall. b. It will not change. c. It will rise. d. It will fall in the short run and rise in the long run.
Fluctuations around the long-run aggregate supply curve are:
A. experienced as expansions, recessions, and recoveries. B. called the business cycle. C. normal for an economy. D. All of these are true.