When aggregate demand exceeds current output, Keynesian analysis indicates that
a. unplanned inventory accumulation will cause output to rise.
b. unplanned inventory accumulation will cause output to fall.
c. unplanned inventory reductions will cause output to rise.
d. unplanned inventory reductions will cause output to fall.
C
You might also like to view...
Creative destruction:
A) leads to the benefit of all economic agents. B) is more likely in an economy with extractive institutions. C) leads to losses of all economic agents. D) is more likely in an economy with inclusive institutions.
A corporate bond sold in 2000 with a face value of $10,000, a $100 coupon, and a maturity date in 2010
A. will pay the bondholder $100 a year every year from 2000 to 2010 and will also pay the bondholder $9,000 in 2010. B. will pay the bondholder $100 a year every year from 2000 to 2010 and will also pay the bondholder $10,000 in 2010. C. requires the bondholder to pay $100 a year every year from 2000 to 2010 and will pay the bondholder $10,000 in 2010. D. requires the bondholder to pay $100 in 2000 only and will pay the bondholder $10,000 in 2010.
Assume that an analyst at a leading business daily observes an increase in productivity across industries which announced healthy annual bonus for their employees. This leads him to conclude that productivity is directly related to the incentive scheme followed by companies. The analyst however ignored the increase in capital per worker ratio and other technological developments in these
companies which also affected productivity. This error in reasoning is related to: a. bounded rationality. b. selection bias. c. representative heuristics. d. availability heuristics.
If (X ? IM) < 0, then capital inflows
a. will be zero. b. will be greater than zero. c. will be less than zero. d. can be zero, positive, or negative.