If the real national output is less than the equilibrium real national output producers find
A. their inventories decreasing and expand their production.
B. their inventories increasing and expand their production.
C. their inventories decreasing and contract their production.
D. their inventories increasing and contract their production.
A. their inventories decreasing and expand their production.
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Under a fixed exchange rate system, if the inflation rate of the United States exceeds the inflation rate of other nations, the
A) dollar will depreciate. B) dollar will appreciate. C) United States will develop a trade surplus. D) United States will develop a trade deficit.
If you invest in a foreign company by buying 28 percent of its shares of stock, you have engaged in
A) portfolio investment. B) moral hazard. C) foreign direct investment. D) adverse selection.
In a particular country in 2000 . the average worker needed to work 40 hours to produce 55 units of output. In that same country in 2008, the average worker needed to work 30 hours to produce 45 units of output. In that country, the productivity of the average worker
a. decreased by about 6 percent between 2000 and 2008. b. remained unchanged between 2000 and 2008. c. increased by about 9 percent between 2000 and 2008. d. increased by about 18 percent between 2000 and 2008.
Suppose that a government agency is trying to decide between two pollution reduction policy options. Under the permit option, 100 pollution permits would be sold, each allowing emission of one unit of pollution. Firms would be forced to shut down if they produced any units of pollution for which they did not hold a permit. Under the pollution tax option, firms would be taxed $250 for each unit of pollution emitted. The regulated firms all currently pollute and face varying costs of pollution reduction, though all face increasing marginal costs of pollution reduction. The two policies being considered will result in the same amount of pollution reduction
A. only if the equilibrium price in the pollution permit market is $250. B. never. C. always. D. only if the equilibrium price in the pollution permit market is greater than $250.