In the Aggregate Expenditure Model, When Real GDP Is Greater

question 148

Multiple Choice

In the aggregate expenditure model, when real GDP is greater than aggregate planned expenditure,

• A) inventories are not being changed.
• B) this cannot happen, because the two variables are always equal.
• C) unplanned inventories are being accumulated.
• D) inventories are being depleted.

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Definitions:

Larger Changes

Significant modifications or transformations in a situation, system, or organization, often requiring substantial time or resources.

Routine Work

Tasks or activities that are considered ordinary or standard, typically carried out on a regular basis.

Call to Action

A marketing term for any design to prompt an immediate response or encourage an immediate sale, such as a button, link, or some other type of request.

Research Plan

A detailed proposal outlining the objectives, methods, and timeline for conducting a research project.