Question

In: Economics

When the price level is above its equilibrium level, there is______ unplanned investment, with ______...

When the price level is above its equilibrium level, there is ______ unplanned investment, with ______ products supplied than demanded.

Multiple choice question.

negative; fewer

positive; fewer

negative; more

positive; more

Solutions

Expert Solution

negative; fewer

Explanation
When price level is above equilibrium level, it means the economy is beyond full employment level. This will result in lower unplanned investment and more products being demanded than supplied.


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