In the keynesian framework as long as output is below

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49) In the Keynesian framework, as long as output is below the equilibrium level, unplanned inventory investment will remain negative, firms will continue to _____ production, and output will continue to _____. (a) lower; fall (b) lower; rise (c) raise; fall (d) raise; rise Answer: D Question Status: Previous Edition 50) In the Keynesian framework, as long as output is _____ the equilibrium level, unplanned inventory investment will remain _____, firms will continue to raise production, and output will continue to rise. 51) In the Keynesian framework, as long as output is _____ the equilibrium level, unplanned inventory investment will remain _____, firms will continue to lower production, and output will continue to fall. Chapter 23 The Keynesian Framework and the ISLM Model 833 52) Unplanned inventory investment for the entire economy equals the excess of 53) If aggregate demand is less than the level of aggregate output, (a) inventory investment will be unaffected. (b) inventory investment will be positive. (c) inventory investment will be negative. (d) insufficient information to determine the level of inventory investment. Answer: B Question Status: Previous Edition 54) If aggregate demand falls short of current output, 55) If aggregated demand is less than actual output, 56) If aggregate demand exceeds actual output,
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834 Frederic S. Mishkin • Economics of Money, Banking, and Financial Markets, Seventh Edition
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