If desired spending is less than output, then firms:
A) accumulate their inventories and cut production.
B) deplete their inventories and cut production.
C) deplete their inventories and increase production.
D) accumulate their inventories and increase production.
A
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In the United States in 2014, a majority of people received health care through
A) Medicaid. B) their employers. C) individually purchased insurance policies. D) Medicare.
An efficient allocation of goods in an exchange economy means that
A) goods were produced by the most efficient technology available. B) no one can be made better off without making somebody else worse off. C) those made worse off are not hurt as badly as the benefits resulting from those made better off. That is, there is a net positive gain. D) in a particular production process one gets the maximum output for a given input.
In the long run aggregate:
A. demand is fixed. B. supply is fixed. C. demand tends to shift to the right. D. supply tends to shift to the left.
Suppose that the United States and Spain both produce cognac and handbags. In the United States, cognac sells for $20 a bottle and handbags sell for $80. In Spain, cognac sells for 30 euros a bottle and handbags sell for 40 euros. Given this information, trade will flow in both directions if the price of a dollar is between
A. 0.67 and 2.0 euros. B. 0.5 and 0.75 euro. C. 2.0 and 3.0 euros. D. 1.5 and 2.5 euros.