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

Question

Quizplus · Accepted Answer

In the Keynesian framework, when output is below the equilibrium level, it means that demand is higher than what is being produced. As a result, unplanned inventory investment becomes negative because firms are selling more than anticipated, leading them to raise production to meet the higher demand.

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