In the neoclassical view of the macroeconomy, if capitalists find they are unable to sell all of their goods
A) they will continue to produce at current levels but will reduce their prices to sell more goods.
B) they will maintain prices and put unsold goods into inventories.
C) they will cut back on production and lower prices.
D) they will cut back on production but maintain current prices to cover costs.

Question

Quizplus · Accepted Answer

In the neoclassical view, if capitalists cannot sell all their goods, they will cut back on production to avoid excess supply and lower prices to stimulate demand.

In the Neoclassical View of the Macroeconomy, If Capitalists Find