Question Details

This produces bad news later for Japan 



1. "Analysts point out, however, that production schedules for December were planned several months in advance, and were likely set before consumer spending began to show signs of weakness. Although in any given month a big rise in production coupled with weak consumer spending isn't a problem, if it happens repeatedly inventories will _____, and factories will _____." The blanks are best filled with 
a) fall; increase production b) fall: decrease production 
c) rise; increase production d) rise; decrease production 
2. "The extent to which the economy slows depends, in part, on inventories. Businesses added $10.8 billion to their stockpiles in the fourth quarter. It's unclear whether that buildup was voluntary or involuntary." If the buildup was involuntary we can expect 
a) higher prices b) layoffs c) increased output d) higher employment 
3. "The trend probably will continue through the autumn, analysts said, as auto makers continue trying to keep _______ in check through a mix of _______ and sweetened cash rebates." Fill in the blanks. 
a) employment; increased output b) inventory; lower output 
c) employment; lower output d) inventory; increased output 
4. "When the yen went through the roof early in the year we all expected it to produce bad news later on. Well, surprise surprise, here it is." This produces bad news later for Japan because the higher yen 
a) increases inflation b) prompts the central bank to increase interest rates 
c) increases the Japanese natural rate of unemployment. 
d) reduces exports which through a multiplier effect decreases income 
5. "The problem is that economists have been underestimating the impact of rising asset values on consumer behavior." This suggests that economists should be including 
a) wealth as a determinant of consumption 
b) the prices of assets when measuring inflation 
c) spending on the stock market as part of consumption 
d) capital gains taxes when computing disposable income




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