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

question 118

Multiple Choice

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

• A)below;negative
• B)above;negative
• C)below;positive
• D)above;positive

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Definitions:

Mutual Fund

An investment vehicle comprising a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, or other assets.

Explicit Costs

Direct, out-of-pocket expenses incurred in the operation of a business, such as wages, rent, and materials.

Implicit Cost

The opportunity cost equal to what a firm must give up in order to use resources it already owns, without having to pay rent or purchase them.

Capital

Economic resource that is used in the production of goods and services. It includes tools, buildings, machinery, and equipment.