In the Aggregate Expenditures Model, in Equilibrium

question 10

Multiple Choice

In the aggregate expenditures model, in equilibrium,

• A) consumption equals investment.
• B) unplanned inventory changes equal zero.
• C) inventory changes equal investment.
• D) aggregate expenditures equal consumption.

---

Definitions:

Modeling

In psychology, a therapeutic technique that involves learning through the observation of others’ behaviors and the outcomes of those behaviors.

Systematic Desensitization

An exposure therapy that uses relaxation training and a fear hierarchy to help clients with phobias react calmly to the objects or situations they dread.

Flooding

A psychological treatment method where a person is exposed to their phobia at its worst until the fear diminishes.

Specific Phobias

An irrational fear and avoidance of a particular object or situation that poses little to no actual danger.