A level of GDP cannot be at equilibrium when aggregate demand exceeds output because firms will notice that
a. inventory stocks are building up.
b. inventory stocks are being depleted.
c. their profits are negative.
d. many of their workers have little to do.
b
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In the ten year period 1981-1990, 1202 commercial banks were closed, with a peak of 206 failures in 1989. This rate of failures was approximately ________ times greater than that in the period from 1934 to 1980
A) two B) three C) five D) ten
Which of the following would increase the U.S. demand for foreign currency?
a. an increase in the U.S. demand for foreign goods b. an increase in incomes abroad c. a decrease in U.S. incomes d. a decrease in the U.S. demand for foreign goods e. an increase in U.S. real interest rates
Under perfect competition and monopolistic competition, profits are zero in long-run equilibrium
a. True b. False Indicate whether the statement is true or false
When monopolistically competitive firms earn ________ economic profits, other firms ________ an industry in the long run.
A. positive; enter B. zero; exit C. negative; enter D. zero; enter