Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

14. Which of the following statements is true? a If AE > GDP, firms will find themselves with (unwanted) unplanned inventory investment on top of

14. Which of the following statements is true?

a

If AE > GDP, firms will find themselves with (unwanted) unplanned inventory investment on top of what was already planned.

b

If AE < GDP, then there will be less inventory investment than firms had planned as firms sell more than what they expected.

c

In equilibrium, there are no unplanned changes in inventories, so firms dont need to change production at all.

d

All of the above.

e

Only a) and b)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

American Public School Finance

Authors: William Owings, Leslie Kaplan

2nd Edition

1111838046, 978-1111838041

More Books

Students also viewed these Finance questions

Question

Show that matrix A satisfies its characteristic polynomial A= 1

Answered: 1 week ago