Firms in a small economy anticipated that inventories would grow over the past year by $750,000, and over that year, inventories grew by exactly $750,000. This implies that
A) aggregate expenditure was greater than GDP that year.
B) there was an unplanned decrease in inventories that year.
C) there was an unplanned increase in inventories that year.
D) aggregate expenditure and GDP were equal that year.
D
You might also like to view...
State the law of diminishing marginal returns
What will be an ideal response?
If a firm in a perfectly competitive market faces a market price of $7, and it decides to increase its production from 4,000 to 12,000 units, the firm's marginal revenue will:
A. diminish once diminishing marginal product sets in. B. rise once diminishing marginal product sets in. C. stay the same. D. increase from $28,000 to $84,000.
Economists ________ that price controls are desirable
A) are in agreement B) are reluctant to state C) never believe D) only recently agree
According to the rational expectations school, when monetary policy makers do exactly what is expected of them, their efforts to stimulate the economy will have no effect on employment
a. True b. False Indicate whether the statement is true or false