According to the Keynesian view, if purchasers buy more goods and services than businesses expect,
a. the inventories of firms would decline, and the firms would expand output in order to restore their inventories to desired levels.
b. the inventories of firms would increase, and the firms would reduce output until inventories were cut back to the desired level.
c. the current level of income would persist in the future.
d. firms would reduce their investment, and the economy would fall into a recession.
A
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________ in the currency drain ratio and ________ in the desired reserve ratio ________ the money multiplier
A) An increase; a decrease; increase B) A decrease; a decrease; increase C) A decrease; an increase; decrease D) An increase; an increase; increase E) An increase; a decrease; decrease
In the 20th century, tertiary employment accounted for roughly
(a) fifty percent of the total job increases. (b) ninety percent of the total job increases. (c) thirty percent of the total job increases. (d) seventy percent of the total job increases.
What is the last dollar rule for cost-minimization? Provide a brief explanation (in words) as well as the corresponding mathematical equality
If the firm is producing at a point where the isocost line is steeper than the isoquant, what does the last dollar rule imply (i.e., where is the last dollar most productive, L or K) and how should the firm alter its capital and labor in the long run?
Along the long-run aggregate supply curve, the price level ____ with increases in aggregate demand
a. does not change b. increases c. decreases slightly d. decreases dramatically