If Aggregate Planned Expenditure Is Less Than Real GDP, in the Short

question 14

Multiple Choice

If aggregate planned expenditure is less than real GDP, in the short run

• A) real GDP will decrease.
• B) exports change to restore equilibrium.
• C) aggregate planned expenditure will increase.
• D) the price level will fall.

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Definitions:

1920s

The decade from 1920 to 1929, marked by significant social, economic, and cultural changes worldwide.

Changes

The process or act of making or becoming different.

Planned Obsolescence

A business strategy in which products are deliberately designed to have a limited useful life or become outdated quickly, encouraging consumers to purchase new or upgraded products more frequently.

Fordlandia

A failed industrial town founded in the Brazilian Amazon by American industrialist Henry Ford in the 1920s, intended to secure a source of cultivated rubber for his automobile manufacturing operations.