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

question 99

Multiple Choice

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

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

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Definitions:

Ownership

The legal right to possess, use, control, and dispose of an asset, property, or a share in a company.

Green Shoe Provisions

An over-allotment option in an IPO, allowing underwriters to buy up to an additional 15% of company shares at the offering price to manage excess demand.

Lead Underwriter

The primary bank or financial institution responsible for managing the issuance of new securities.

Offer Price

The price at which a seller is willing to sell a security or commodity; also known as the ask price.