In the Keynesian framework,as long as output is ________ the equilibrium level,unplanned inventory investment will remain ________,firms will continue to lower production,and output will continue to fall.
A)below;negative
B)above;negative
C)below;positive
D)above;positive

Question

Quizplus · Accepted Answer

In the Keynesian framework, when output is above the equilibrium level, unplanned inventory investment is positive because firms are producing more than is being sold. This leads firms to lower production, causing output to fall.

In the Keynesian Framework,as Long as Output Is ________ the Equilibrium