If Aggregate Planned Expenditures Are Less Than Real GDP Then

question 273

Multiple Choice

If aggregate planned expenditures are less than real GDP then

• A) the economy remains in disequilibrium until aggregate planned expenditures increase to the level of real GDP.
• B) firms' inventories will increase and real GDP will decrease as production falls.
• C) firms must increase their planned expenditures until aggregate planned expenditures increase to the level of real GDP.
• D) firms' inventories will decrease and real GDP will decrease as production falls.

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Definitions:

Student's Major

The specific field of study that a college or university student has chosen to focus on during their academic career.

Annual Income

The total amount of money earned by an individual or business over the course of a year from various sources before taxes and deductions.

Years of Experience

The length of time an individual has spent engaged in a particular job or activity, gaining skills and expertise in that area.

Psychiatrist

A medical doctor specializing in the diagnosis, treatment, and prevention of mental, emotional, and behavioral disorders.