In the Aggregate Expenditures Model, If Aggregate Expenditures Are Greater

question 117

Multiple Choice

In the aggregate expenditures model, if aggregate expenditures are greater than real GDP,

• A) there will be unplanned decreases in inventories.
• B) employment decreases.
• C) aggregate output decreases.
• D) actual real output is greater than equilibrium real output.

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Definitions:

Witness

A person who sees an event, typically a crime or accident, take place.

Milgram's Study

A series of social psychology experiments conducted by Stanley Milgram, which measured the willingness of participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.

Obedience to Authority

The act of following orders or directives from an authority figure, sometimes despite personal moral objections or the potential for negative outcomes.

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The act of causing physical, emotional, or psychological injury or damage to someone.