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Question 9

Multiple Choice

Use the following to answer questions :
Exhibit: Keynesian Cross Use the following to answer questions : Exhibit: Keynesian Cross -(Exhibit: Keynesian Cross) In this graph, if firms are producing at level Y<sub>3</sub>, then inventories will ______, inducing firms to ______ production. A) rise; increase B) rise; decrease C) fall; increase D) fall; decrease
-(Exhibit: Keynesian Cross) In this graph, if firms are producing at level Y3, then inventories will ______, inducing firms to ______ production.


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

Correct Answer:

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