In the Short-Run Macro Model,if Firms Produce More Output Than

question 46

Multiple Choice

In the short-run macro model,if firms produce more output than they sell,those firms will

• A) increase the prices of their products
• B) decrease their output
• C) increase their output
• D) cut back on their consumption spending
• E) increase the prices of their products and reduce the amount of output they produce

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Definitions:

Equilibrium

A state in a market where supply equals demand, and there is no external pressure to change the price or quantity.

Wheat Industry

A sector of the economy focused on the production, processing, and distribution of wheat and wheat-based products.

Partial Equilibrium Analysis

The process of examining the equilibrium conditions in individual markets and for households and firms separately.

Consumer Preferences

Refers to the subjective tastes and opinions that influence an individual's purchasing decisions.