Refer to Figure 23-1. If the economy is at point L, what will happen?
A) Inventories have risen above their desired level, and firms decrease production.
B) Inventories have risen above their desired level, and firms increase production.
C) Inventories have fallen below their desired level, and firms increase production.
D) Inventories have fallen below their desired level, and firms decrease production.
A
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How much food production would Calvin lose in a day in order to produce 2 yards of cloth?
a. 2 pounds
b. 1-1/2 pounds
c. 1 pounds
d. 1/2 pound
What is the opportunity cost of leisure?
a. the relaxation a person gets b. the income given up by not working c. the vacation time taken d. the chance to socialize with friends and family
The aggregate demand curve is
A. U Shaped B. Horizontal C. Vertical D. Downward sloping
Suppose a country has a national debt of $2,000 billion, a GDP of $28,000 billion, and a budget deficit of $115 billion. How much will its new national debt be?
A) $2,115 billion B) $1,885 billion C) $28,115 billion D) $25,885 billion