If aggregate output is greater than planned spending, then
A. unplanned inventory investment is zero.
B. unplanned inventory investment is positive.
C. actual investment equals planned investment.
D. unplanned inventory investment is negative.
Answer: B
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Within the framework of economics, optimization means providing a good or service until
a. total benefits are maximized. b. total benefits and total costs are equal. c. marginal benefits exceed marginal costs by the greatest amount possible. d. marginal benefits and marginal costs are equal. e. as long as total benefits are greater than total costs, any amount may be optimal under the right circumstances.
Auto workers laid off from Hot-Rod Autoworks as the result of a recession are considered:
A. structurally unemployed. B. cyclically unemployed. C. frictionally unemployed. D. seasonally unemployed.
If the balance on the current account in the United States is $750 billion, which of the following is most likely to be true?
A) The balance on the financial account is negative. B) The trade balance is negative. C) The balance on the capital account is positive. D) Net foreign investment is negative.
When a firm divests itself of an unrelated business to focus on it core competency, the firm is
A) using economies of scope to cut costs. B) downsizing. C) outsourcing. D) market sharing.