the economics of money, banking, and financial markets

682 #

© 2014 Pearson Canada Inc.#

17. 
    

    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

    
    


18. 
    

    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

    
    


19. 
    

    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

    
    


20. 
    

    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