Undesired inventory depletion means fall in stock of products. If there is an undesired inventory depletion of the product then it will limit the availability of that product to the consumers as there will be shortage of product in the market. As a result of this, the price will increase and the firms would want to achieve the desired levels of stock by increasing output. So, the correct answer is 'Option A'.
The normal reaction to unplanned (and undesired) inventory depletion (decrease) would include: O Price increases and...
If aggregate output exceeds planned aggregate expenditure, O A. unplanned inventory increases have occurred and firms will increase output. O B. unplanned inventory reductions have occurred and firms will increase output. O c. unplanned inventory increases have occurred and firms will decrease output. O D. unplanned inventory reductions have occurred and firms will decrease output.
1. Other things equal, a decrease in the price level ________ the equilibrium interest rate and ________ equilibrium output. a. increases; increasesb. increases; decreasesc. decreases; increasesd. decreases; decreases
Which would most likely shift the aggregate supply curve? A change in the prices of _____. domestic products foreign products financial assets resources A decrease in aggregate demand in the short run will reduce _____. both real output and the price level the price level and increase the real domestic output the real domestic output and have no effect on the price level the price level and have no effect on real domestic output The economy's long-run AS curve assumes...
1. Which list contains only things that would make people want to hold more money? a. Interest rates decrease, the price level increases.b. Interest rates decrease, the price level decreases.c. Interest rates increase, the price level increases.d. Interest rates increase, the price level decreases.
Which of the following would cause the price of equity to decrease according to the dividend discount model? a. none of the other choices are correct b. an increase in the discount rate c. an increase in expected future dividends d. an increase in the growth rate of expected future dividends
QUESTION 1 increases the volume of imports in an economy. A decrease in the price of domestic goods and services. O An increase in national income A decrease in national income. An increase in the price of foreign goods and services. QUESTION 2 Which statement about US private domestic investment is INCORRECT? It includes the purchase of machinery by foreign businesses. It does not include investments by the government. It includes the production of new software. It includes new residential...
Which statement about EOQ is false? O EOQ will increase as annual demand (A) increases. EOQ decreases as inventory carrying costs decrease. O EOQ Yncreases as item unit cost (c) decreases. EOQ attempts to minimize the total cost of carrying and ordering inventory. All are steps to improve the performance of an operation EXCEPT: A) Subordinate everything to the constraint. OB) Once the constraint is no longer a constraint, your work is done. OC ) Elevate the constraint . OD...
3. Originally, the price of X is $150 and the price of Y is S50. If the price of X increases by $20 and the price of Y increases by S10, the new budget line will a. move outward and be parallel to the old budget line b. move outward and become steeper c. move inward and become steeper d. move outward and become flatter e. move inward and become flatter x"2 + 1n0) 4. An individual's preferences are represented...
The accompanying graph shows the relationship between the average annual increase in the price level and the average annual increase in money supply across eight countries. 45-degree I Harpoglia a. What concept, related to monetary policy, does this graph help demonstrate? Valko Cherbani O Ragnar Nurkse's balanced growth theory O the liquidity preference model O buffer theory O convergence hypothesis Caz Resa Tyndaria Harnnastas Veckram eGonmorl'n monetary neutrality Increase in money supply (%) Use the concept or model identified in...
PLEASE EXPLAIN YOUR ANSWERS. THANK YOU! If education produces positive externalities and the government does not intervene in the market, we would expect O the equilibrium price to be higher than the optimal price. b. the equilibrium quantity to be lower than the optimal level. c.the equilibrium quantity to be higher than the optimal level. d. both a and b are correct Tradable pollution permits a. have prices that are set by the government. b. will be more valuable to...