Consider a Simple Macro Model with a Constant Price Level

question 14

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.When national income falls short of desired aggregate expenditures,unplanned inventory ________ will induce firms to ________ the rate of output production.

• A)depletion; lower
• B)depletion; raise
• C)buildup; lower
• D)buildup; raise
• E)at zero; maintain the current

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