When aggregate planned expenditure exceeds real GDP, there is
A) a planned increase in inventories.
B) a planned decrease in inventories.
C) an unplanned decrease in inventories.
D) an unplanned increase in inventories.
E) an unplanned decrease in the price level.
C
You might also like to view...
Once a monopolistically competitive firm innovates, it is likely that:
A. it will enjoy long-run profits. B. other firms will rush to create similar, highly substitutable goods. C. it will need government protection to earn enough to cover its R & D costs. D. None of these is likely to happen.
The Fed would engage in ____ it wanted to address an inflationary gap
a. expansionary monetary policy b. contractionary monetary policy c. contractionary fiscal policy d. expansionary fiscal policy
________ marginal opportunity cost implies that the more resources already devoted to any activity, the payoff from allocating yet more resources to that activity increases by progressively smaller amounts
A) Increasing B) Decreasing C) Constant D) Negative
Since the 1930s, overall tariff rates in the United States have
A. increased. B. become very unstable, changing week to week. C. remained unchanged. D. decreased.