In the Aggregate Expenditures Model, If Aggregate Expenditures Are Less

question 177

Multiple Choice

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

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

---

Definitions:

Amoebozoans

A group of amoeba-like organisms, which move and feed by means of pseudopodia and are classified within the domain Eukarya.

Porphyra

A genus of red algae that grows in cold seawater and is commonly used as nori in sushi preparation.

Aquatic Food Chains

The hierarchical sequence of organisms each dependent on the next as a source of food in an aquatic environment.