In the Short Run,when Output Is Greater Than Planned Aggregate

question 102

Multiple Choice

In the short run,when output is greater than planned aggregate expenditure,firms will

• A) reduce production expenditure.
• B) increase production.
• C) increase planned aggregate expenditure.
• D) decrease planned aggregate expenditure.
• E) increase potential output.

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Definitions:

Goods

Tangible items that are produced, bought, or sold.

Knowledge-Based

Pertains to systems or processes that are driven by the collection, organization, and application of knowledge.

Operations Management

A field of management that deals with designing, controlling, and redesigning business operations in the production of goods or services.