If the demand for a firms output unexpectedly decreases, you would expect its inventory to: a. increase.

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If the demand for a firm’s output unexpectedly decreases, you would expect its inventory to:

a. increase.

b. decrease.

c. remain the same.

d. increase or remain the same, depending on whether or not prices are sticky.

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Macroeconomics

ISBN: 9781264112456

22nd Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

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Question Posted: Mar 01, 2024 08:02 AM

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If the demand for a firms output unexpectedly decreases, you would expect its inventory to: a. increase.

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The answer is b decrease Heres why Demand decrease When the demand for a firms output unexpectedly d...View the full answer

Macroeconomics

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