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Assume the Economy Is Currently Experiencing Aggregate Expenditure Greater Than

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Multiple Choice

Assume the economy is currently experiencing aggregate expenditure greater than aggregate income. The economy will move toward equilibrium as businesses begin to produce _____, leading to _____ employment, and _____ income.


Definitions:

Opportunity Cost

The expense related to overlooking the next in line preferable option in the course of decision-making.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, effectively representing the benefits you miss out on choosing one option over another.

Inefficient Outcome

A result or situation in which resources are not utilized in the best possible manner, leading to potential wastage or loss.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods, given a set of inputs, representing the trade-off between different choices.

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