In the short-run macro model, if aggregate expenditure is less than GDP, output in the future will a. decline as firms cut production to stop the buildup of inventories b. increase as firms cut their prices to try to stop depletion of inventories c. remain unchanged indefinitely unless government takes action d. decline as firms increase their prices to stop the buildup of inventories e. increase as firms increase production to try to stop depletion of inventories
In the short-run macro model, if aggregate expenditure is less than GDP, output in the future will a. decline as firms cut production to stop the buildup of inventories b. increase as firms cut their prices to try to stop depletion of inventories c. remain unchanged indefinitely unless government takes action d. decline as firms increase their prices to stop the buildup of inventories e. increase as firms increase production to try to stop depletion of inventories
Chapter4: Exchange Rate Determination
Section: Chapter Questions
Problem 13QA
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Question
In the short-run macro model, if aggregate expenditure is less than
a. |
decline as firms cut production to stop the buildup of inventories |
|
b. |
increase as firms cut their prices to try to stop depletion of inventories |
|
c. |
remain unchanged indefinitely unless government takes action |
|
d. |
decline as firms increase their prices to stop the buildup of inventories |
|
e. |
increase as firms increase production to try to stop depletion of inventories |
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