In the short-run macro model, if GDP = $5 trillion and aggregate expenditure = $4.6 trillion, we would expect
a. prices to fall until the additional $0.4 trillion of output was sold
b. prices to rise
c. output to rise because businesses anticipate that buyers will spend more in the future to compensate for weak spending in this period
d. inventories to rise by $0.4 trillion
e. inventories to shrink by $0.4 trillion
D
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Refer to the scenario above. The opportunity cost of producing one pound of apples in Zeta is:
A) 0.67 pounds of oranges. B) 2 pounds of oranges. C) 1.5 pounds of oranges. D) 3 pounds of oranges.
The tragedy of the commons was avoided in the Middle Ages in much the same way economist Elinor Ostrom's research suggested. Which of the following ways reflects Ostrom's findings, and was actually conducted in the middle ages?
A) Common grounds were sold to individuals. B) Local law enforcement monitored entry into the commons. C) There was social pressure to uphold traditionally accepted limits on family. D) The government imposed a tax for the use of the commons.
A decrease in the foreign real interest rate would cause the domestic country's net exports to ________ and cause the domestic country's IS curve to ________
A) rise; shift up B) rise; shift down C) fall; shift up D) fall; shift down
Between 1860 and 1914, the growth rate in industrial production
(a) fell behind the growth in the overall U.S. population. (b) outpaced the growth rates in the labor force and population. (c) was less than the growth rate in agricultural production. (d) fell behind both the growth rate in agricultural production and that of the overall U.S. population.