Inventory levels unexpectedly rise and as a result firms reduce the level of production. Which of the following is consistent with these two occurrences?
A) TP is greater than TE.
B) TP is less than TE.
C) TP is equal to TE.
D) TP is equal to TE minus the rise in inventories above the optimum inventory level.
E) none of the above
A
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Use the data in the table below to answer the next question. The data describes a hypothetical economy and are denominated in billions of dollars.Disposable income$200Net private domestic investment40Value of imports15National income300Personal taxes31Net exports9Gross private domestic investment55Net foreign factor income10Statistical discrepancy0This nation's exports are ________.
A. $16 billion B. $24 billion C. $9 billion D. $28 billion
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Government regulations designed to reduce the moral hazard problem include
A) laws that force firms to adhere to standard accounting principles. B) light sentences for those who commit the fraud of hiding and stealing profits. C) state verification subsidies. D) state licensing restrictions.