-In the Above Table, There Are No Taxes and No

question 435

Multiple Choice

-In the above table, there are no taxes and no imports or exports. If current real GDP is equal to $7,000, then firms will

• A) not change production because $7,000 is the equilibrium level of real GDP.
• B) increase production to rebuild inventories to their target level.
• C) decrease production to restore inventories to their target level.
• D) None of the above answers is correct.

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Definitions:

Land Improvements

Enhancements to a plot of land such as landscaping, lighting, and paving, that are intended to make the land more usable and increase its value.

Fences

Structures built to enclose or separate areas, typically made out of wood, metal, or other materials, serving various purposes such as privacy, security, or decorative.

Interest

The cost of borrowing money, expressed as a percentage, charged by a lender to a borrower for the use of assets.

Finance Construction

The act of providing or securing funds for the construction of buildings or infrastructure.