If Aggregate Output Is Above Its Equilibrium Level ________

question 53

Multiple Choice

If aggregate output is above its equilibrium level ________.

• A)there is an excess supply of goods
• B)actual output is below planned expenditure
• C)firms will tend to replenish their low inventories driving output up toward equilibrium
• D)all of the above
• E)none of the above

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Definitions:

Time Instrument

A document promising payment of a certain amount of money at a fixed or determinable future time, such as a promissory note or check.

Payment

The transfer of money or goods from one party to another as compensation for goods, services, or to fulfill a legal obligation.

Check Clearing

The process by which banks exchange checks and settle funds, ensuring that the amount specified on the check is transferred from the payer's account to the payee's account.

Bank Time

A policy where employees can accumulate hours of work time to use at a later date, often for leave purposes.