the economics of money, banking, and financial markets

679 #

© 2014 Pearson Canada Inc.#

5. 
   

   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

   
   


6. 
   

   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

   
   


7. 
   

   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

   
   


8. 
   

   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