If the Economy Finds Itself at a Point Where Planned

question 139

Multiple Choice

If the economy finds itself at a point where planned spending is greater than output, then we will expect to see:

• A) an equilibrium level of output.
• B) an increase in inventories.
• C) a decrease in inventories.
• D) a decrease in planned spending.

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Definitions:

Gateway 2000

Initially a direct sales personal computer manufacturer that became notable during the 1990s for its direct sales model and cow-spotted shipping boxes.

Arbitration

A type of alternative dispute resolution in which disputes are submitted for resolution to private nonofficial persons selected in a manner provided by law or the agreement of the parties.

Binding Contract

An agreement between two or more parties that is legally enforceable in court.

Specific Performance

A legal remedy requiring a party to execute a contract according to the precise terms agreed upon, rather than paying damages for failing to do so.