If Aggregate Planned Expenditure Exceeds Real GDP, Then Inventories

question 26

Multiple Choice

If aggregate planned expenditure exceeds real GDP, then inventories

• A)remain constant and real GDP remains constant.
• B)increase and real GDP falls.
• C)increase and real GDP increases.
• D)decrease and real GDP decreases.
• E)decrease and real GDP increases.

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Definitions:

Tolerate Pain

The ability to endure discomfort or suffering without allowing it to overtly affect one's performance or wellbeing.

Technological Advances

The forward progression in technology leading to the development of new tools, systems, or methods that improve efficiency or effectiveness.

Turnover

The rate at which employees leave a company and are replaced by new hires, impacting an organization's performance and culture.

Organizational Commitment

The psychological attachment that an employee feels towards their organization, which can affect their willingness to stay with the company.