Suppose that in 2014, firms discover that their inventories are falling below their planned levels. Which of the following statements is CORRECT?
A) The level of aggregate savings must equal the level of desired investment.
B) Even though firms are trying, they are unable to maximize profits.
C) Aggregate demand is less than aggregate supply.
D) Real GDP is less than equilibrium expenditure.
Correct Answer:
Verified
Q161: An increase in investment by U.S. firms
Q162: An increase in U.S. exports because of
Q165: Autonomous expenditure is not influenced by
A) the
Q167: If planned expenditures equal $16 trillion when
Q168: If real GDP is $16 trillion and
Q169: The difference between planned and unplanned spending
Q170: All else being constant, autonomous expenditure
A) increases
Q172: Which of the following statements is CORRECT?
A)
Q176: Autonomous expenditure refers to
A) aggregate expenditure solely
Q178: A decrease in autonomous consumption will
A) shift
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