Author Question: Which of the following is correct? When the expected amount supplied exceeds the expected amount ... (Read 69 times)

leo leo · **on:** Jun 30, 2018

Which of the following is correct? When the expected amount supplied exceeds the expected amount demanded, then:
a. Inventories rise, unemployment tends to rise, and prices tend to fall.
b. Inventories rise, unemployment tends to fall, and prices tend to rise.
c. Inventories fall, unemployment tends to rise, and prices tend to rise.
d. It is impossible for these two to be unequal.
e. You are mixing apples and oranges. These two macroeconomic variables should not be compared.

Question 2

Taken as a whole the balance of payments:
a. Is usually positive when a nation is healthy and negative when it is weak.
b. Is usually negative when the nation is healthy and positive when it is weak.
c. Must equal zero.
d. Must equal GDP minus personal consumption expenditures.
e. Can be positive or negative. It does not depend on the health of the country.