In the Aggregate Expenditure Model, When Real GDP Is Greater

question 90

Multiple Choice

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

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

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Definitions:

Vocational Interest

Refers to preferences and inclinations towards certain professions or occupational activities, often used to guide career choices and development.

Experimental Drug

An experimental drug is a medication or therapy not yet approved by regulatory authorities for public use, currently being tested for its safety and effectiveness.

Correlation

A statistical measure that describes the extent to which two variables change together.

Percent Alive

The proportion, usually expressed as a percentage, of individuals in a population that are alive at a given time.