Which of the Following Is INCORRECT

question 387

Multiple Choice

Which of the following is INCORRECT ?

• A) The multiplier dampens the increase in income that occurs during expansions and brings the economy to a new equilibrium GDP.
• B) Firms increase production in response to unplanned decreases in inventories.
• C) Firms experience unplanned decreases in inventories as expansions begin.
• D) Expansions usually begin with an increase in autonomous spending.

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Definitions:

Property Rights

The legal rights to use, control, and benefit from resources, assets, or property.

Conservation

The sustainable management and use of natural resources to prevent depletion and harm to the environment.

Extraction Quantity

The volume or amount of natural resources, such as minerals, oil, or gas, that is removed from the earth or harvested.

Future Profits

Future profits represent the anticipated earnings or financial gains a business expects to achieve in the coming periods.