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.

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Definitions:

Natural Selection

The mechanism where organisms that are more suitably adapted to their surroundings are more likely to flourish and reproduce, serving as a crucial driver of evolutionary change.

Adaptive Flexibility

The ability to adjust one's thoughts and behaviors in response to changing circumstances and new information.

Organic Methyl Molecule

A molecule containing a methyl group (-CH3) that is part of an organic compound.

DNA Strand

A molecule that carries genetic instructions used in the growth, development, functioning, and reproduction of all living organisms and many viruses.