What is the result when planned spending exceeds real national output?
A) The economy is in equilibrium.
B) There is unplanned accumulation of business inventories, and firms decrease output.
C) There is unplanned depletion of business inventories, and firms increase output.
D) Firms cut back on the number of workers in order to remain competitive.
Correct Answer:
Verified
Q51: The demand for investment
A) is upward-sloping.
B) depicts
Q52: What would likely happen to investment demand
Q53: A decrease in interest rates will
A) shift
Q54: According to John Maynard Keynes, why does
Q55: Investment spending is
A) equal to real income.
B)
Q57: What is the result when planned spending
Q58: If the marginal propensity to consume is
Q59: By saying that the size of the
Q60: An increase in the marginal propensity to
Q61: If government spending increases by $10 billion
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