Figure 11.1
-Refer to Figure 11.1. If the expenditures in the economy correspond to C + I, what should businesses do to get back to equilibrium if the economy is at point c?
A) decrease production, because expenditures exceed production
B) increase production, because expenditures exceed production
C) decrease production, because expenditures are less than production
D) increase production, because expenditures are less than production
Correct Answer:
Verified
Q128: Q129: Recall Application 2, "Using Long-Term Macro Data Q130: Recall Application 3, "John Maynard Keynes: A Q131: Q132: Which of the following is not an Q134: The presence of automatic stabilizers means that Q135: An increase in the price level will: Q136: During recessions, government spending usually: Q137: The multiplier for taxes can be calculated Q138: Assume that the consumption function is C![]()
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A)
A) decrease because
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