Inventories held by firms Multiple Choice tend to increase the severity of short-run fluctuations. tend to reduce the severity of short-run fluctuations. are held by businesses because they are a costless way of responding to demand shocks.

Inventories held by firms Multiple Choice tend to increase the severity of short-run fluctuations. tend to reduce the severity of short-run fluctuations. are held by businesses because they are a costless way of responding to demand shocks.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 17QP

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Question

Inventories held by firms
Multiple Choice
tend to increase the severity of short-run fluctuations.
tend to reduce the severity of short-run fluctuations.
are held by businesses because they are a costless way of responding to demand shocks.

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