If planned spending exceeds planned output in an economy, the result is a(n) _____

Fill in the blank(s) with the appropriate word(s).


unintended decrease in inventories.

Economics

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Economic theory has traditionally focused on optimality in decision making.

Answer the following statement true (T) or false (F)

Economics

Find the Marginal Rate of Technical Substitution for the following production functions:

a. q = L0.5 K0.5 b. q = L0.5 + K0.5 c. q = min{K,L} d. q = L + K

Economics

If a profit-maximizing, perfectly competitive firm is making only a normal profit in the short run, then the firm is in:

a. disequilibrium. b. equilibrium where MR exceeds minimum ATC. c. equilibrium where MR equals minimum AVC. d. equilibrium where P = AFC. e. equilibrium where P = ATC

Economics

Economic theory predicts that if the government imposes a minimum wage above the equilibrium wage, then:

A. firms' labor costs will fall. B. employment will fall. C. total economic surplus will rise. D. all workers will be better off.

Economics