Figure 9-4 -Refer to Figure 9-4.Which of the Following Best Describes What

question 141

Multiple Choice

Figure 9-4

-Refer to Figure 9-4.Which of the following best describes what is happening to inventories at Y₀?

• A)Inventories are unexpectedly rising, and firms will reduce prices.
• B)Inventories are unexpectedly falling, and firms will reduce output.
• C)Inventories are unexpectedly rising, and firms will reduce output.
• D)Inventories are unexpectedly rising, and firms will increase output.

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Definitions:

Formal Sanctions

Officially recognized actions, penalties, or rewards intended to enforce compliance with laws, rules, or social norms.

Informal Sanctions

Punishments or rewards that are not officially sanctioned by law or formal authority, but arise from social norms and expectations.

Laws

Systematic sets of rules that govern behavior and are enforced through social or governmental institutions.

Uncentralized Political Systems

Political systems in which power is not located in a central authority but is dispersed among various groups and organizations.