In the short run, with predetermined prices, when output is less than planned aggregate expenditure:
A. planned investment is less than actual investment.
B. potential output is less than short run equilibrium output.
C. planned investment is greater than actual investment.
D. potential output is greater than short run equilibrium output.
Answer: C
You might also like to view...
When economists speak of changes in GDP measured in constant dollars, they mean that:
a. money GDP is constant. b. the price level is constant. c. a price index has been used to adjust money GDP for the effects of inflation. d. the growth rate of money GDP has been adjusted for changes in population.
A firm moves from one SRATC curve to another
a. when it changes the number of workers it employs b. when it has contractual obligations on its plant and equipment c. when it produces more output with the same plant size d. in the short run e. in the long run
Discuss the differences between Keynesian and supply-side fiscal policies.
What will be an ideal response?
Individual farmers maximize profit by producing the level of output at which
A. Average cost equals zero. B. Marginal cost equals price. C. Marginal cost equals zero. D. Marginal cost equals average cost.