If planned aggregate expenditure is less than total production
A) the economy is in equilibrium.
B) GDP will increase.
C) actual inventories will equal planned inventories.
D) firms will experience an unplanned increase in inventories.
D
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Assume that a firm's total revenue is less than its total cost for the level of output it is producing. In the short run, this firm should: a. expand output
b. contract output. c. shut down. d. There is not enough information to answer the question.
An increase in the price of a good could be caused by a. An increase in supply
b. An increase in demand. c. A decrease in supply and an increase in demand. d. Either b. or c.
When people hold a specific quantity of money during a specific time period because they expect to use the money to buy a specific value (price times quantity) of goods, we refer to that money holding as satisfying their
a. precautionary demand for money b. liquidity demand for money c. saving demand for money d. speculative demand for money e. transactions demand for money
If the government provides universal health? insurance, what screening process will the government? need?
A. It? won't need a screening test. B. It? won't use screening tests but it will use signals. C. It will only give health insurance to nonminussmokers. D. It? won't use screening tests but it will use statistical discrimination.