If Firms Find That Consumers Are Purchasing Less Than Expected

question 294

Multiple Choice

If firms find that consumers are purchasing less 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 rise.
• D)The economy will adjust to macroeconomic equilibrium as inventories fall and production and employment rise.
• E)The unemployment rate will fall.

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Definitions:

Trade Secrets

Information, including formulas, patterns, compilations, programs, devices, methods, techniques, or processes, that derives economic value from not being generally known and is subject to efforts to maintain its secrecy.

Economic Espionage

The act of secretly gathering confidential economic information or trade secrets from competitors for competitive advantage.

Proprietary Information

Confidential business information that provides an enterprise with a competitive edge, such as patents, trade secrets, and special recipes.

Transnational Consumers

Consumers who transcend their local markets and make purchases based on global rather than national preferences.