Assume That the Demand for Goods and Services Falls Across

question 21

Multiple Choice

Assume that the demand for goods and services falls across the entire economy and for an extended period of time.If the prices are inflexible, the unintended increase in business inventories would force:

• A)businesses to keep the production at the existing level.
• B)businesses to increase the level of production.
• C)businesses to lower the level of production.
• D)businesses to increase the level of employment.

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Definitions:

Key Aspects

Fundamental elements or dimensions that are crucial for understanding or assessing a particular situation or system.

Structure

The arrangement of and relations between the parts or elements of something complex.

Technology

The application of scientific knowledge for practical purposes, especially in industry and the development of innovations.

Spatial Differentiation

The process of distinguishing locations based on various factors such as geographical features, demographics, or economic activities.