The table above gives data for the nation of Mosh. If real GDP is $10 trillion, then
A) firms increase production because inventories are less than their target levels.
B) firms decrease production because inventories exceed their target levels.
C) the economy has reached equilibrium and no change in production will occur.
D) firms decrease production because inventories are less than their target levels.
E) We need more information to determine whether firms increase, decrease, or do not change their production.
B
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Which of the following is not a characteristic of a battle of the sexes game?
A) Each player has a dominant strategy. B) Nash equilibria exist at every outcome where the players successfully coordinate. C) The two general outcomes are where players either coordinate with one another or they do not. D) The payoff for coordinating is higher than the payoff for not coordinating.
Which of the following would not increase French exports to the United States?
a. an appreciation of the U.S. dollar b. an appreciation of the euro c. a depreciation of the euro d. an increase in French preferences for American goods e. an increase in real income in France
Adam Smith was an advocate of:
a. mercantilism. b. a nation maximizing its stock of gold. c. unrestricted or free trade. d. the visible hand of public interest.
Crowding out is the tendency for increased government deficits to:
A. increase investment spending. B. reduce consumption spending. C. increase consumption spending. D. reduce investment spending.