This year, the aggregate quantity supplied by sellers in the United States is $5 trillion worth of goods and services. The aggregate quantity demanded by buyers during the same year is $4.5 trillion worth of goods and services. It follows that
(a) at the current price level, there will be unintended build-up of inventories, which will cause real GDP to decline as producers reduce orders for new products and reduce employment.
(b) at the current price level, there will be unintended reduction of inventories, which will cause real GDP to increase as producers increase orders for new inventory and increase employment.
(c) the economy is in macroeconomic equilibrium at the current price level.
(d) the price level is likely to increase.
2006-11-29
14:00:09
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2 answers
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asked by
Anonymous
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Social Science
➔ Economics