All of the following are true when there is an unplanned decrease in inventories, except:
A. GDP is less than aggregate expenditures
B. Saving is less than planned investment
C. Actual investment is greater than planned investment
D. Real GDP will be rising
C. Actual investment is greater than planned investment
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Plywood is used in the construction of houses. If the price of plywood rises, what happens to the supply of houses?
A) The supply increases so that the supply curve shifts rightward. B) The supply decreases so that the supply curve shifts leftward. C) The quantity supplied increases, but there is no shift in the supply curve. D) The quantity supplied decreases, but there is no shift in the supply curve. E) The quantity supplied decreases, and the supply curve shifts leftward.
Which of the following people would be considered unemployed by the Bureau of Labor Statistics?
I. Mrs. X retires from her job and does not look for another job. II. Mr. Y was laid off from his job as a welder, but expects to be rehired in 8 months. A) I only B) II only C) Both I and II D) Neither I nor II
Explain how you can calculate average physical product and marginal physical product from information on total physical product and variable input
What will be an ideal response?
Which of the following statements does not describe a perfectly competitive market?
A) A large number of firms are involved. B) Entry and exit are relatively easy. C) In the short run firms can earn profits, minimize losses, or earn a normal profit. D) Price is greater than marginal revenue.