If an Unplanned Increase in Business Inventories Occurs at Some

question 84

Multiple Choice

If an unplanned increase in business inventories occurs at some level of GDP, then GDP:

• A)entails a rate of aggregate expenditures in excess of the rate of aggregate production.
• B)may be either above or below the equilibrium output.
• C)is too low for equilibrium.
• D)will decrease.

---

Definitions:

Equilibrium Constant

A mathematical expression that relates the concentrations of reactants and products in a chemical reaction at equilibrium.

Ph

A measure that provides insight into the acidity or basicity level of an aqueous solution; values range from 0 (very acidic) to 14 (very basic).

Hemoglobin

A red protein responsible for transporting oxygen in the blood of vertebrates, its molecule comprises four subunits, each containing an iron atom.

Le Chatelier's Principle

A principle that states that if a system at equilibrium is subjected to a change in concentration, temperature, volume, or pressure, then the system adjusts to counteract that change and restore a new equilibrium.