If Firms Find That Consumers Are Purchasing More Than Expected

question 246

Multiple Choice

If firms find that consumers are purchasing more than expected, which of the following would you expect?

• A)Aggregate expenditure will likely be greater than GDP.
• B)Aggregate expenditure will likely be less than GDP.
• C)The economy will adjust to macroeconomic equilibrium as inventories rise, and production and employment fall.
• D)The economy will adjust to macroeconomic equilibrium as inventories fall, and production and employment fall.
• E)Firms will see inventories rising.

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Definitions:

Meperidine

A synthetic opioid analgesic medication used to treat moderate to severe pain, known commonly by its brand name, Demerol.

Hydromorphone

A potent opioid analgesic medication used to manage significant pain when other treatments are insufficient.

Furosemide

A diuretic medication used to treat fluid build-up due to heart failure, liver disease, or kidney disease by increasing urine production.

Duration of Action

The length of time the effects of a drug or medication last after reaching its peak action.