Refer to the information provided in Figure 23.9 below to answer the question(s) that follow.
Figure 23.9Refer to Figure 23.9. There is a $75 million decrease in unplanned inventories at an aggregate output level of
A. < $100 million.
B. $100 million.
C. $200 million.
D. $300 million.
Answer: B
You might also like to view...
Aggregate supply increases when ________
A. the price level rises B. the money wage rate falls C. consumption increases D. the money price of oil increases
Economists
a. agree that the costs of reducing inflation to zero are worth the benefits. The increase in unemployment from reducing inflation will be smaller if inflation expectations remain high. b. agree that the costs of reducing inflation to zero are worth the benefits. The increase in unemployment from reducing inflation will be larger if inflation expectations remain high. c. disagree about whether the costs of reducing inflation to zero are worth the benefits. The increase in unemployment from reducing inflation will be smaller if inflation expectations remain high. d. disagree about whether the costs of reducing inflation to zero are worth the benefits. The increase in unemployment from reducing inflation will be larger if inflation expectations remain high.
Business cycles
A. have been a recurring source of debate to economic theory throughout history. B. represent a fairly recent problem confronting economic systems. C. show very regular and smooth patterns of ups-and-downs in economic systems. D. cannot occur in market-based economic systems. E. have been increasingly unstable over the past half century.
A true cost-of-living adjustment (COLA) in response to a change in prices would compensate consumers so that they would be able to
A) purchase the same bundle they purchased before prices changed. B) achieve the same level of utility they did before prices changed. C) face the same choices they did before prices changed. D) achieve an increase in utility that is equal to the rate of inflation.