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:

Bonds Payable

A financial liability representing the amount a company owes to holders of its issued bonds, typically repayable at a future date.

Cash Dividends

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Operating Activities

Transactions related to the primary business operations, like selling goods or services and other core business activities, reflected in the company's cash flow.