Which of the following is correct? When actual leakages exceed actual injections, then:
a. Inventories rise, unemployment tends to rise, and prices tend to fall.
b. Inventories rise, unemployment tends to fall, and prices tend to rise.
c. Inventories fall, unemployment tends to rise, and prices tend to rise.
d. It is impossible for these two to be unequal.
e. The nation falls into an economic recession.
.D
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In the figure above, the economy is at point A when the price level rises to 120. Money wage rates and other resource prices remain constant. Firms are willing to supply output equal to
A) $15.5 trillion. B) $16.0 trillion. C) $16.5 trillion. D) None of the above answers is correct.
Marginal benefits and total benefits are equal when net total benefits are maximized
Indicate whether the statement is true or false
The effects of a higher than expected price level are shown by
a. shifting the short-run aggregate supply curve right. b. shifting the short-run aggregate supply curve left. c. moving to the right along a given aggregate supply curve. d. moving to the left along a given aggregate supply curve.
In Figure 21.4, a firm that produces over 800 units of output should choose a plant with which short-run average total cost function?
A. ATC3 only. B. Either ATC2 or ATC3. C. ATC1 only. D. ATC2 only.