In the Keynesian Framework,as Long as Output Is Below the Equilibrium

question 8

Multiple Choice

In the Keynesian framework,as long as output is below the equilibrium level,unplanned inventory investment will remain ________ and firms will continue to ________ production.

• A)negative;lower
• B)negative;raise
• C)positive;lower
• D)positive;raise

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Definitions:

Central Government

The government entity responsible for the administration and implementation of policies over an entire nation as opposed to local governing bodies.

Pro-Debtor Laws

Legislation designed to protect individuals who owe money, often by offering bankruptcy protections, limiting interest rates, and providing mechanisms for debt relief.

Articles of Confederation

The original constitution of the 13 American states, adopted in 1781 and replaced by the U.S. Constitution in 1789, which provided a loose federal government.

Tariff Duties

Taxes imposed by a government on imported or exported goods to protect domestic industries or generate revenue.