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Businesses hold inventories based on what they expect their sales to be. When aggregate________is greater than...

Businesses hold inventories based on what they expect their sales to be. When aggregate________is greater than expected, inventories_______the targeted levels.

a supply; fall below
b demand; fall below
c supply; remain constant
d demand; remain constant

Economists do not agree on whether a_______business cycle exists in the United States.

a real
b political
c GDP
d credible

Keynesian economics grew out of the_________, when inflation was no problem but output was_____.

a 1960's; rising
b 1970's; falling
c 1930's; falling
d 1950's; rising

The lesson of new classical economics for policymakers is that managing aggregate______has an effect on real_____only if change is unexpected.

a supply; GDP
b demand; GDP
c supply; GNP
d demand; GNP

Real GDP divided by the population.

a Per capita real GDP
b Rule of 72
c compound growth
d Per capita real GNP
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Answer #1

Option B. This is because when firms realize that economic agents are demanding more output, their inventories start depleting soon

Option B. There is uncertainty about the PBC theory in the US because of the political system prevailing in the nation

Option C. This is was the time of Great Depression when aggregate output started falling

Option B

Option A

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