679 #
© 2014 Pearson Canada Inc.#
In the Keynesian framework, as long as output is ____ the equilibrium level, unplanned
inventory investment will remain ____ and firms will continue to lower production.
A) below; negative
B) above; negative
C) below; positive
D) above; positive
Answer: D
Diff: 2 Type: MC Page Ref: 546 - 547
Skill: Applied
Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output
In the Keynesian framework, as long as output is ____ the equilibrium level, unplanned
inventory investment will remain positive and firms will continue to ____ production.
A) below; lower
B) above; lower
C) below; raise
D) above; raise
Answer: B
Diff: 2 Type: MC Page Ref: 546 - 547
Skill: Applied
Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output
In the Keynesian framework, as long as output is above the equilibrium level, unplanned
inventory investment will remain ____ and firms will continue to ____ production.
A) negative; lower
B) negative; raise
C) positive; lower
D) positive; raise
Answer: C
Diff: 2 Type: MC Page Ref: 546 - 547
Skill: Applied
Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output
In the Keynesian framework, as long as output is ____ the equilibrium level, unplanned
inventory investment will remain negative and firms will continue to ____ production.
A) below; lower
B) above; lower
C) below; raise
D) above; raise
Answer: C
Diff: 2 Type: MC Page Ref: 546 - 547
Skill: Applied
Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output