Consider a Simple Macro Model with a Constant Price Level

question 14

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.When national income falls short of desired aggregate expenditures,unplanned inventory ________ will induce firms to ________ the rate of output production.

• A)depletion; lower
• B)depletion; raise
• C)buildup; lower
• D)buildup; raise
• E)at zero; maintain the current

---

Definitions:

Joint Payees

Individuals or entities named in a negotiable instrument as the collective recipients of a payment or financial obligation.

Negotiate

The process of discussing something with one or more people in order to reach an agreement or settle differences.

Alternative Payees

Refers to the option within certain financial instruments or payment arrangements to designate a different recipient than the original one specified.

Endorsee

One who receives an endorsement.