Equilibrium GDP will not exist where output exceeds aggregate demand because businesses will notice that
a. their profits are positive.
b. inventory stocks are building up.
c. inventory stocks are being depleted.
d. their level of depreciation is rising.
b
You might also like to view...
A crucial national income accounting identity sets the government budget deficit equal to
A) S - I - NX. B) S + I - NX. C) S - I + NX. D) S + I + NX.
Which firm is not dealing with adverse selection
a. a manufacturer requires a 90 day probationary period for new employees b. a temporary clerical agency requires a typing test c. a manufacturer requires suppliers to be ISO 9000 certified d. Smokers get the same life insurance rates as non-smokers
What is the difference between government deficit and government debt?
Expansionary fiscal policy in an open economy has a
A. greater effect than in a closed economy. B. similar effect as in a closed economy. C. smaller effect than in a closed economy. D. greater effect than monetary policy.