If total spending is greater than the value of output, firms will

a. cut prices.
b. decrease production levels.
c. tend to raise prices.
d. see inventories rise.


c

Economics

You might also like to view...

If people assume that future rates of inflation will ________, they are said to have adaptive expectations

A) not be related to inflation rates of the past B) follow the pattern of inflation rates in the past C) be higher than inflation rates of the past D) be lower than inflation rates of the past

Economics

Arbitrage in foreign exchange and gold are both common as buyers can bargain with the sellers on the market price

Indicate whether the statement is true or false

Economics

Education is one of the few areas of study in your text that do not require the use of public finance.

A. True B. False C. Uncertain

Economics

Allocative and productive efficiency are achieved under the market structure of:

A. pure competition. B. pure monopoly. C. oligopoly. D. monopolistic competition.

Economics