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

question 1

Multiple Choice

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

• A)lower;fall
• B)lower;rise
• C)raise;fall
• D)raise;rise

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Definitions:

Elasticity of Demand

A measure of how sensitive the quantity demanded of a good is to a change in its price, indicating how consumers' purchasing decisions are affected by price changes.

Natural Gas

A fossil fuel used primarily for heating, electricity generation, and as a fuel for vehicles, consisting mainly of methane and found underground.

Price Increase

A rise in the cost of goods or services over a specific period of time, which can affect purchasing power and economic stability.

Substitutes

Substitutes are goods or services that can be used in place of each other, fulfilling the same needs or desires of the consumer.