When aggregate expenditure is less than GDP, which of the following is true?
A) There was an unplanned increase in inventories.
B) Households bought more new homes than they anticipated.
C) Firms spent more on capital goods than they anticipated.
D) All of the above must be true when aggregate expenditure is less than GDP.
A
You might also like to view...
Comparing the effect on the monetary base between an open market purchase of government securities from a bank and the same open market operation conducted with the general public, the monetary base
A) decreases by the same amount if the general public sells the securities or if a bank sells the securities. B) does not change if it is the general public that sells the securities. C) increases by a larger amount if a bank sells the securities than if the general public sells the securities. D) increases by a larger amount if the general public sells the securities than if a bank sells the securities. E) increases by the same amount if the general public sells the securities or if a bank sells the securities.
The above figure shows the Lorenz curve for wealth for the nation of Rusha
If the government were to confiscate all of the wealth from the poorest twenty percent of the population and give it to the wealthiest twenty percent, the Lorenz curve would A) not change. B) shift farther away from the line of equality. C) shift closer to the line of equality. D) flip above the line of equality.
An individual firm's best response:
A. is the firm's most profitable choice given the actions of its rivals. B. is not necessarily selected by all firms in a Nash equilibrium. C. is always the option with the highest price for each firm. D. is to set the same price and quantity as all of its rivals.
When a company hires a celebrity to endorse its product, it aims to send a message about: a. the heritage associated with its product
b. the competitive price offered for its product. c. the market share it holds. d. the quality of its product.