If aggregate quantity demanded exceeds aggregate quantity supplied, we can expect an unplanned
A. depletion of inventories, causing firms to raise prices.
B. depletion of inventories, causing firms to lower prices.
C. accumulation of inventories, causing firms to raise prices.
D. accumulation of inventories, causing firms to lower prices.
Answer: A
You might also like to view...
If private savings equals $1.2 billion and private investment equals $1.5 billion, then there is a
A) current account balance. B) government sector deficit. C) private sector deficit. D) private sector surplus. E) government sector surplus.
Earnings sharing regulation helped to improve a public utility's profit seeking efficiency incentives
Indicate whether the statement is true or false
In the above table, what is the marginal physical product of worker 5?
A) 8 B) 10 C) 11 D) 7
If a society were to use a widely accepted, easily measurable, but highly perishable food product as commodity money, then the ________ function of money would most likely fail
a. medium of exchange b. unit of account c. store of value d. transfer of value