The following question are based on the following information:
-If intended spending exceeds the total value of final goods and services produced
A) GDP falls.
B) firms cut back on their production rates.
C) inventories will be depleted faster than firms desire.
D) the aggregate supply curve must be vertical.
E) depreciation exceeds investment.
Correct Answer:
Verified
Q23: GDP is at the equilibrium level when
A)
Q24: The interest rate
A) equals the expected rate
Q25: If total intended spending precisely equals GDP
A)
Q26: If output determines income and income determines
Q27: The following question are based on the
Q29: The following question are based on the
Q30: A marginal propensity to save of 0.32
Q31: The determinants of investment are
A) the marginal
Q32: The following question are based on the
Q33: If total intended spending is greater than
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