If Aggregate Expenditures Are Less Than Current Output

question 268

Multiple Choice

If aggregate expenditures are less than current output:

• A) businesses will cut back on output.
• B) businesses will produce more.
• C) employment levels will rise.
• D) inflation results.

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Definitions:

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Typical Family

A standard or average family unit, often used in statistical analyses to represent an average household.

Standard Of Living

The degree of wealth, comfort, material goods, and necessities available to an individual, group, or society.

Inflation Rate

The rate expressed as a percentage at which the average price level of goods and services increases, leading to a decrease in purchasing power.