In the Short Run with Predetermined Prices, When Output Is

question 67

Multiple Choice

In the short run with predetermined prices, when output is less than planned aggregate expenditure, firms will:

• A)reduce production.
• B)increase production.
• C)increase planned aggregate expenditure.
• D)decrease planned aggregate expenditure.

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Definitions:

Bursa

A small fluid-filled sac located near joints that reduces friction between tissues, such as bone and tendons.

Fluid

A substance that has no fixed shape and yields easily to external pressure; a gas or (especially) a liquid.

Joint

The point at which two bones are connected, allowing for movement and support.

Contracture

An abnormal tightening or shortening, often resulting in a deformity.