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© 2014 Pearson Canada Inc.#
If actual output is less than equilibrium output, firms will ____ output to keep from
____ inventories.
A) increase; accumulating
B) increase; depleting
C) decrease; depleting
D) decrease; accumulating
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
If actual output is greater than equilibrium output, firms will ____ output to keep from
____ inventories.
A) increase; accumulating
B) increase; depleting
C) decrease; depleting
D) decrease; accumulating
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
When the level of unplanned inventory investment is equal to zero, the economy is
____.
A) in disequilibrium
B) in a recession
C) in equilibrium
D) overheating
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
If aggregate demand equals output, ____.
A) the economy is in a recession
B) output will increase
C) output will fall
D) the economy is at its equilibrium level
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