When the total quantity of unsold new Chevrolets increases from 50,000 to 75,000
Ans: the producer engages in inventory investment
You might also like to view...
What does a household's budget line show?
What will be an ideal response?
Which of the following categories constitutes the majority of federal outlays in 2016?
a. National defense b. Interest on the federal debt c. Social Security, Medicare, and welfare d. Grants to states and localities e. Capital expenditures
If an economy produces 2,000 units of output with a price level of $1 and the money supply (M) is $1,000, velocity is:
A. 2. B. 500. C. 50. D. 5.
In order to be successful in a market economy, entrepreneurs must
A) produce a good that consumers value less than the resources used to produce it. B) combine resources in a manner that increases their value. C) produce anything that consumers value, regardless of cost. D) use only personal financial capital so they can avoid interest payments on borrowed funds.