Assuming Inflexible Prices, If the Demand for Many Goods and Services

question 50

Multiple Choice

Assuming inflexible prices, if the demand for many goods and services falls across the entire economy and for an extended period of time:

• A)many firms will face a constant reduction in their inventories.
• B)many firms will face with an inventory pile up and will be forced to cut production.
• C)many firms will face with an inventory pile up and will be forced to hire more workers.
• D)many firms will face a constant reduction in their inventories and will be forced to hire more workers.

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Definitions:

Preconceptual Phase

A stage prior to conception, focusing on health and behaviors that can influence the well-being of a future pregnancy and offspring.

Cognitive Development

The process of growth and change in intellectual abilities such as thinking, reasoning, and understanding.

Developmental Task

A task which is expected to be accomplished during a particular stage of life, contributing to the successful development of an individual.

Havighurst

Refers to Robert Havighurst, an American psychologist and educator known for his theories on human development and aging.