If planned spending exceeds planned output in an economy, the result is a(n)
What will be an ideal response?
unintended decrease in inventories
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In a competitive market for a private good with no price or quantity regulations, no external cost nor external benefit, low transactions costs, and no taxes or subsidies,
A) the allocation of resources is planned by the government. B) production is organized by government organizations. C) efficiency can be attained in the market with no government intervention. D) efficiency is usually be achieved by majority rule. E) efficiency is generally obtained by using a command system.
Explain the difference between absolute and comparative advantage, giving an example of your answer
As the market price of a good rises, businesses will respond by producing more of that good because
A. marginal revenue exceeds marginal cost after the price increase. B. the rising price causes marginal cost to fall. C. laws and regulations require them to do so. D. marginal cost exceeds marginal revenue after the price increase.
Automatic stablizers
A. are not effective in influencing real GDP at any time. B. are only effective in influencing real GDP during normal times. C. are only effective in influencing real GDP at times of a recession. D. can influence real GDP at normal times and times of a recession.