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Exhibit: Keynesian Cross in This Graph, If Firms Are

Question 59

Multiple Choice

Exhibit: Keynesian Cross Exhibit: Keynesian Cross In this graph, if firms are producing at level Y<sub>1</sub>, then inventories will _____, inducing firms to _____ production. A) rise; increase B) rise; decrease C) fall; increase D) fall; decrease In this graph, if firms are producing at level Y1, then inventories will _____, inducing firms to _____ production.


A) rise; increase
B) rise; decrease
C) fall; increase
D) fall; decrease

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