A country reports that unplanned inventories increased during 2012. The increase in unplanned inventories leads to
A) firms decreasing production, which decreases GDP.
B) actual aggregate expenditure being different than real GDP.
C) consumers increasing their consumption expenditure, which increases GDP.
D) firms increasing production, which increases GDP.
E) the government decreasing production, which decreases GDP.
A
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Claims that economic agents have against banks are known as:
A) assets. B) capital. C) deposits. D) liabilities.
Bill purchases property insurance for his office building, which includes coverage for fire damage. The policy offers premium discounts for smoke detectors, fire alarms, fire extinguishers and sprinkler systems
This is an incentive system to help avoid A) adverse selection. B) moral hazard. C) optimal-stopping. D) none of the above
A recessionary gap exists when the level of full-employment output exceeds the equilibrium level of output
Indicate whether the statement is true or false
According to the output effect, a decrease in the wage will decrease production costs, so the price of final goods will decrease and the demand for labor will decrease.
Answer the following statement true (T) or false (F)