If the demand for a firms output unexpectedly decreases, you would expect its inventory to: a. increase.
Question:
If the demand for a firm’s output unexpectedly decreases, you would expect its inventory to:
a. increase.
b. decrease.
c. remain the same.
d. increase or remain the same, depending on whether or not prices are sticky.
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The answer is b decrease Heres why Demand decrease When the demand for a firms output unexpectedly d...View the full answer
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Related Book For
Macroeconomics
ISBN: 9781264112456
22nd Edition
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
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