-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:

Saint Bernard

A large dog breed known for its rescue work and friendly nature, originally from the Swiss Alps.

Reward

A benefit, often monetary, offered as an incentive for the completion of a specific task or for providing valuable information.

General Public

The broad group of people who are not segmented by any particular category or classification.

Subjective Standard

A legal or evaluative criteria based on personal opinions, feelings, or perspectives, rather than objective, measurable factors.