Refer to Figure 23-1. If the economy is at a level of aggregate expenditure given by point K
A) production is less than spending.
B) inventories will increase above their desired level.
C) the economy is in equilibrium.
D) production is greater than spending.
C
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In the short run, product differentiation enables firms in monopolistically competitive markets to:
A. act like a monopolist. B. sell a standardized good. C. collude with competing firms to set prices. D. act like perfectly competitive firms.
A competitive firm facing a perfectly elastic demand curve can: a. increase price without losing any sales
b. sell all of its output at any price it chooses. c. sell all of its output at the market price. d. sell more output only by reducing its price.
The content of the basket of goods and services used to compute the CPI changes every month
a. True b. False Indicate whether the statement is true or false
A price taker is a buyer or a seller who:
A. takes the market price as given. B. buys or sells only at a price where profits can be made. C. accepts whatever price that the government legislates as the price of the good or service. D. has the ability to influence the equilibrium price in the market.