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If inventory stocks are low and firms have enough capital and labor to support an output increase,

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If inventory stocks are low and firms have enough capital and labor to support an output increase,

Question 1.

Generally speaking, investment does ________ when aggregate output does ________.

▸ well; poorly

▸ poorly; well

▸ well; well

▸ not change; well

Question 2.

If inventory stocks are low and firms have enough capital and labor to support an output increase,

▸ monetary and fiscal policy will be very effective.

▸ fiscal policy will be effective, but monetary policy will be ineffective.

▸ monetary policy will be effective, but fiscal policy will be ineffective.

▸ neither monetary nor fiscal policy will be effective.

Textbook

Principles of Economics

Edition: 12^th

Authors: Case, Fair, Oster

Read 66 times

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rand22

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More solutions for this book are available here

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shayeshaye00 Author

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Thanks for your help!

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