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:

Long-Lived Asset

Assets with a useful life extending beyond one year, typically including property, plant, and equipment, and used in the operation of a business.

Productive Life

The expected period during which an asset is able to provide economic benefits or contribute to revenue generation.

Ordinary Repairs

Ordinary repairs are routine maintenance expenses undertaken to maintain the efficiency and operating condition of an asset but do not significantly extend its life.

Maintenance Costs

Expenses incurred to keep property, equipment, or machinery in efficient operating condition and repair.