When Firms Plan to Restock Their Inventories, Equilibrium Expenditure_______ and Real

question 154

Multiple Choice

When firms plan to restock their inventories, equilibrium expenditure_______ and real GDP_______.

• A)decreases; decreases
• B)decreases; does not change
• C)increases; decreases
• D)decreases; increases
• E)increases; increases

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Definitions:

External-unstable Factor

refers to outside influences that can affect behavior or outcomes but are inconsistent and unpredictable, such as luck or chance.

Pessimistic Explanatory

A cognitive style where individuals habitually attribute negative events to stable, global, and internal causes.

Internal

Pertaining to or occurring within an individual’s mind or self.

Internal Causes

denotes reasons or factors within an individual, such as personal beliefs or emotions, that can influence their behavior or attitude.