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

question 1

Multiple Choice

In the Keynesian framework,as long as output is below the equilibrium level,unplanned inventory investment will remain negative,firms will continue to ________ production,and output will continue to ________.

• A)lower;fall
• B)lower;rise
• C)raise;fall
• D)raise;rise

---

Definitions:

Weighted-Average

A method of calculating an average that takes into account the importance, or weight, of each value.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest.

Book Value

The asset's recorded value on the balance sheet, determined by subtracting any depreciation or amortization from the asset's cost.

No-Par

Refers to stocks issued without a par value, meaning the stock's value is not set and can be determined by the company's board of directors.