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 b?
A) increase production, because expenditures exceed production
B) decrease production, because expenditures are less than production
C) decrease production, because expenditures exceed production
D) increase production, because expenditures are less than production
Correct Answer:
Verified
Q157: Recall Application 1, "Falling Home Prices, the
Q158: Q159: In our most basic model of the Q160: A tax _ income. Q161: Suppose investment falls by $200 and equilibrium Q163: If the consumption function is C = Q164: Recall Application 4, "The Locomotive Effect: Why Q165: The level of consumption in the economy![]()
A) increase raises national
B)
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