f aggregate demand falls short of current output, _____________.a.business firms will cut production to keep from accumulating inventories.b.business firms will expand production to keep from accumulating inventories.c.business firms will cut production to build up inventories.d.business firms will expand production to build up inventories.

If planned aggregate expenditure is less than total production, then: a. the economy is in equilibrium. b. GDP will increase. c. firms will experience an unplanned increase in inventories. d. actual inventories will equal planned inventories.

A decrease in aggregate demand results in a(n) ________ in the ________.Question 10Answera.recession; long runb.expansion; short runc.expansion; long rund.recession; short run

As long as economic losses are being earned in an industry, firms will ________ the industry and the supply curve will shift to the ________.Group of answer choicesenter; rightenter; leftexit; leftexit; right

A decrease in taxes on business investments will decrease aggregate supply.Group of answer choicesTrueFalse

Assume the economy is initially operating at the natural level of output. Which of the following events will initially cause a shift of the aggregate supply curve?Question 5Select one:a.an increase in the price targetb.an increase in government spendingc.a decrease in the money supplyd.an increase in taxese.None of the above.