If firms sell exactly what they expected to sell then
What will be an ideal response?
- inventories will not change, and GDP and employment will remain stable
- aggregate expenditure will be equal to GDP
- there is no unplanned change in inventories
You might also like to view...
A natural barrier to entry is defined as a barrier that arises because of
A) technology that allows one firm to meet the entire market demand at lower average total cost than could two or more firms. B) patents or licenses that exclude others from producing a good or service. C) many firms producing the good and thereby allowing choice for all consumers. D) anticompetitive practices by a firm that keep other firms from producing. E) one firm owning a key natural resource.
Accounting profit is usually smaller than economic profit.
Answer the following statement true (T) or false (F)
For Kimbra, the marginal utility of having lawn mowing service once a month is 90 utils. Having the service a second time in a month is 70 utils, and a third time is 50 utils. What is the most likely estimate in utils for having the lawn mowing service a fourth time in a month?
a. 50 b. 30 c. 10 d. 0
Income tax collections:
A. rise during a recession, thus reduce the severity of the recession. B. rise during a recession, thus increase the severity of the recession. C. fall during inflationary episodes, thus increase the severity of the inflation. D. fall during a recession, thus reducing the severity of the recession.