Author Question: Consider the two graphs above. Suppose that final goods are assembled only when ordered and to ... (Read 59 times)

lracut11 · **on:** Jun 30, 2018

Consider the two graphs above. Suppose that final goods are assembled only when ordered and to satisfy the precise preferences of each consumer. This would ________ the desired level of inventories, as depicted in graph ________.

A) increase; B
B) increase; A
C) decrease; B
D) decrease; A

Question 2

Expectations are adaptive in ________.

A) traditional Keynesian models
B) the Lucas Model
C) new Keynesian theory
D) the real business cycle model