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.

---

Definitions:

Brokering

The act of serving as a mediator or intermediary between parties to facilitate a deal, agreement, or information exchange.

Dual Career

Refers to a situation where both partners in a marriage or committed relationship have their own careers and professional aspirations.

Executive Director

The top manager in an organization or agency, responsible for overseeing the entity's daily operations and strategic direction.

Foreclosing

The process of taking possession of a mortgaged property as a result of the borrower's failure to keep up mortgage payments.