Using the Aggregate Expenditures Model, Which of the Following Occurs

question 1

Multiple Choice

Using the aggregate expenditures model, which of the following occurs if aggregate expenditures fall short of real GDP?
I. Actual investment exceeds planned investment.
II. Unemployment rises.
III. The price level will fall.
IV. The economy will experience a recessionary gap.

• A) I and II
• B) I and III
• C) I, II, and III
• D) I, II, III, and IV

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Definitions:

Reliable

The level of consistency and dependability in the results provided by an evaluative device over time.

WEIRD Participants

Refers to subjects of behavioral science research who are predominantly from Western, Educated, Industrialized, Rich, and Democratic societies, leading to questions regarding the universality of study results.

Measures of Construct

Refers to tools or methods used to assess the presence and strength of theoretical constructs.

Measurement Error

The difference between the observed value and the true value of a variable, often arising from inaccuracies in data collection or processing.