681 #
© 2014 Pearson Canada Inc.#
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
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
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
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