If aggregate expenditures exceed real GDP, then:
a. employment falls.
b. the economy will have deflation.
c. firms are depleting their inventories.
d. the money supply will increase.
c
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If MC > MR,
A. output should be reduced. B. marginal profit is positive. C. there are losses. D. output should be increased.
Suppose that real domestic output in an economy is 2400 units, the quantity of inputs is 60, and the price of each input is $30. The level of productivity in this economy is:
A. 50. B. 20. C. 30. D. 40.
In the circular flow, ________ provide the factor services.
A. businesses and households B. producers C. households D. businesses
If a decrease in income results in an increase in the quantity demanded for a product, the product is ________, and the value of the income elasticity of demand is ________.
A. a normal good; positive B. a normal good, negative C. an inferior good; positive D. an inferior good; negative