Author Question: Which of the following scenarios would prompt producers to supply less now than they otherwise would ... (Read 23 times)

oliviahorn72 · **on:** Jun 30, 2018

Which of the following scenarios would prompt producers to supply less now than they otherwise would have?
a. Producers expecting a higher price in the future
b. Producers expecting prices to remain unchanged
c. Producers expecting a lower price in the future
d. Producers expecting prices to be volatile

Question 2

If there is currently a recessionary gap:
a. The price level will tend to rise.
b. Real output will tend to fall.
c. Both a. and b. will occur.
d. None of the above will occur.