Which of the following is INCORRECT?a. The multiplier dampens theincrease in income that occursduring expansions and brings theeconomy to a new equilibrium GDP.O b. Firms experience unplanneddecreases in inventories asexpansions begin.C.Firms increase production inresponse to unplanned decreases ininventories.O d. Expansions usually begin with anincrease in autonomous spending.

Expansion occurs when there is a rise in the aggregate demand, output and employments. The Expansion…

Answered: Which of the following is INCORRECT? O…

Which of the following is INCORRECT? O The multiplier dampens the increase in income that occurs during expansions and brings the economy to a new equilibrium GDP.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Which of the following is INCORRECT?
a. The multiplier dampens the
increase in income that occurs
during expansions and brings the
economy to a new equilibrium GDP.
O b. Firms experience unplanned
decreases in inventories as
expansions begin.
C.
Firms increase production in
response to unplanned decreases in
inventories.
O d. Expansions usually begin with an
increase in autonomous spending.

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