If Aggregate Planned Expenditure Exceeds Real GDP Then

question 152

Multiple Choice

If aggregate planned expenditure exceeds real GDP then

• A)inventories decrease, and the AE curve shifts downward.
• B)inventories increase, and the AE curve shifts upward.
• C)inventories decrease, and as real GDP increases, a movement up along the AE curve occurs.
• D)inventories increase, and as real GDP increases, a movement up along the AE curve occurs.
• E)inventories increase, and the short-run aggregate supply curve shifts rightward.

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Definitions:

Living Organisms

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Evolutionary Perspective

A theoretical approach that explains human behavior and mental processes as adaptations that have evolved to increase survival and reproductive success.

Case Study

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Patterns and preferences of food consumption established during childhood, significantly impacting nutritional health and development.