In the Keynesian Framework,as Long as Output Is Above the Equilibrium

question 86

Multiple Choice

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

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Definitions:

CCA Class

Refers to a category within the Capital Cost Allowance system in Canada, grouping assets with similar depreciation rates for tax purposes.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time for an investment.

Required Rate

The minimum rate of return on an investment that a manager or investor is willing to accept before making an investment decision.

Equivalent Annual Cost

The cost per year of owning and operating an asset over its entire lifespan, considering both the initial purchase price and ongoing operating expenses.