If aggregate expenditures (AE) are less than aggregate output (real GDP), then firms will:
a. have unplanned inventory accumulation.
b. earn above-average profits.
c. expand production and hire more workers.
d. be raising their prices.
a
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Refer to Figure 4-6. What is the value of the portion of consumer surplus that has been transferred to producer surplus as a result of the price floor?
A) $1,200 B) $1,500 C) $1,800 D) $3,000
The appreciation of the dollar in the late 1990s shifted the U.S. aggregate supply curve outward
a. True b. False Indicate whether the statement is true or false
Money demand depends on
a. the price level and the interest rate. b. the price level but not the interest rate. c. the interest rate but not the price level. d. neither the price level nor the interest rate.
In the above table, C is consumption expenditure, I is investment, G is government expenditure, and X - M is net exports. All entries are in dollars. The slope of the aggregate expenditure function is
A) -0.10. B) 0.10. C) 0.60. D) 0.70.