the economics of money, banking, and financial markets

681 #

© 2014 Pearson Canada Inc.#

13. 
    

    A decrease 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: 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

    
    


14. 
    

    If aggregate demand is less than the level of aggregate output, then ____ inventory
    investment will be ____.
    A) planned; positive
    B) actual; positive
    C) actual; negative
    D) planned; negative
    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

    
    


15. 
    

    If aggregate demand falls short of current output, business firms will ____ production to
    ____ inventories.
    A) cut; keep from accumulating
    B) expand; keep from accumulating
    C) cut; build up
    D) expand; build up
    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

    
    


16. 
    

    If aggregated demand is less than actual output, unplanned inventory ____ will cause
    output to ____.
    A) accumulation; rise
    B) depletion; fall
    C) depletion; rise
    D) accumulation; fall
    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