If total spending is less than the value of total output, firms
A) may decide to cut prices.
B) may increase production levels.
C) will tend to raise prices.
D) will notice inventories falling.
Correct Answer:
Verified
Q90: Using the standard 45° line diagram, how
Q91: The aggregate demand curve
A)slopes upward.
B)slopes downward.
C)is perfectly
Q92: Figure 9-1 Q93: A recessionary gap occurs when Q94: Government stabilization policy Q96: The expenditure schedule will shift upward when Q97: Figure 9-1 Q98: The amount by which equilibrium real GDP Q99: Two variables that affect the slope of Q100: Figure 9-1 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)the price level
A)cannot influence investment spending.
B)can stimulate
A)investment
