Over Time,if Customer Demand Is Continuously Below Potential Output,firms Will

question 68

Multiple Choice

Over time,if customer demand is continuously below potential output,firms will eventually

• A) raise their production levels aggressively.
• B) lower their production levels or raise them only slightly.
• C) raise their prices aggressively.
• D) lower their prices or raise them only slightly.
• E) require government intervention.

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Definitions:

Thrifty

Being careful with money and resources by avoiding waste, spending wisely, and seeking good value.

Miserly

A person who is extremely reluctant to spend money; excessively frugal or stingy.

Individuals

Persons considered separately from other members or units in a group or category.

Look Alike

Generally refers to two or more entities that are visually similar to each other; often used in the context of people, products, or phenomena that share appearances.