In the Keynesian model, if aggregate expenditures exceed aggregate output and inventories of firms fall, then the aggregate output and the business sector could be expected to:
A. increase output.
B. decrease output.
C. decrease investment.
D. hire fewer workers.
Answer: A
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In the figure above, if the wage rate is $6 per hour, then the
A) firms' surplus is the area d + e + f. B) workers' surplus is the area a + b + c. C) deadweight loss equals zero. D) Only answers A and C are correct. E) Answers A, B, and C are correct.
Which statement is true?
A. The most important job of the Federal Reserve is to control our money supply. B. Our currency is issued by the United States Treasury. C. There is a reserve requirement of 12% on all checking accounts. D. None of the statements are true.
If the U.S. exchange rate falls,
A) foreign products are now more expensive toforeigners. B) foreign products are now cheaper to U.S. citizens. C) U.S. products are now more expensive to U.S. citizens. D) U.S. products are now cheaper to foreign countries.
A homeless family is given a government subsidy for an apartment in an affordable housing project. The apartment
A. is subject to the free-rider problem. B. has widespread benefits and concentrated costs. C. is not a public good. D. is not subject to the principle of rival consumption.