If real GDP ________ aggregate planned expenditure, then as a result firms ________ production
A) exceeds; decrease
B) equals; increase
C) exceeds; increase
D) is less than; decrease
E) equals; decrease
A
You might also like to view...
According to the Gordon-Growth model, what is the value of a stock with a dividend of $1, required return on equity of 10% and expected growth rate of dividends of 5%?
A) $2 B) $10 C) $20 D) $21
What happens when the price level falls?
A) Total planned real spending remains constant. B) Total planned real spending increases. C) Total planned real spending also falls. D) Planned real spending on goods increases but planned real spending on services falls.
Assume a perfectly competitive firm sells its output for $150 per unit. It currently produces 6,000 units of output, at which output level it minimizes its average variable cost at $152 per unit. Assuming it wants to maximize its profits, it should: a. increase output
b. decrease output, but not shut down. c. maintain its current output rate. d. shut down.
A firm typically achieves its position as a monopolist as a result of
A) a small market and a constant average cost. B) a downward sloping demand for the product. C) barriers to entry. D) the absence of long-run profits in an industry.