In the Keynesian framework,as long as output is ________ the equilibrium level,unplanned inventory investment will remain ________ and firms will continue to raise production.
A)below;negative
B)above;negative
C)below;positive
D)above;positive

Question

Quizplus · Accepted Answer

In the Keynesian framework, if the output is below the equilibrium level, there will be unplanned inventory investment, which will be negative. Firms will then increase production to match demand and eliminate inventory.

In the Keynesian Framework,as Long as Output Is ________ the Equilibrium