680 #
© 2014 Pearson Canada Inc.#
In the Keynesian framework, as long as output is below the equilibrium level, unplanned
inventory investment will remain negative, firms will continue to ____ production, and
output will continue to ____.
A) lower; fall
B) lower; rise
C) raise; fall
D) raise; rise
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 ____, firms will continue to raise production, and output
will continue to rise.
A) below; negative
B) above; negative
C) below; positive
D) above; positive
Answer: A
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 ____, firms will continue to lower production, and output
will continue to fall.
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
An increase in unplanned inventory investment for the entire economy equals the excess of
____.
A) output over aggregate supply
B) output over aggregate demand
C) aggregate supply over output
D) aggregate demand over output
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