Solved

If Aggregate Output Is Below Its Equilibrium Level ________

Question 79

Multiple Choice

If aggregate output is below its equilibrium level ________.


A) there is an excess demand for goods
B) actual output is below planned expenditure
C) firms will tend to replenish their low inventories driving output up toward equilibrium
D) all of the above
E) none of the above

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q74: IS Graph 1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5036/.jpg" alt="IS Graph

Q75: IS Graph 2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5036/.jpg" alt="IS Graph

Q76: In a stock market boom _.<br>A)autonomous consumption

Q77: An increase in autonomous investment _.<br>A)increases equilibrium

Q78: A decrease in autonomous investment _.<br>A)decreases equilibrium

Q80: A decrease in autonomous consumption _.<br>A)raises planned

Q81: When firms spend more on additional holdings

Q82: IS Graph 2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5036/.jpg" alt="IS Graph

Q83: Consumption expenditures decrease when _.<br>A)the real interest

Q84: Assume that households decide to save more,so