If firms find that consumers are purchasing more than expected, ...

[stephzh]

If firms find that consumers are purchasing more than expected, which of the following would you expect?
 
  A) The economy will adjust to macroeconomic equilibrium as inventories fall, and production and employment fall.
  B) Aggregate expenditure will likely be greater than GDP.
  C) Aggregate expenditure will likely be less than GDP.
  D) The economy will adjust to macroeconomic equilibrium as inventories rise, and production and employment fall.

Question 2

Refer to Figure 24-1. Ceteris paribus, an increase in interest rates would be represented by a movement from
 
  A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.

[makaylafy]

Answer to Question 1

B

Answer to Question 2

B

[stephzh]

Thank you

[makaylafy]

No problemo