If Firms Find That Consumers Are Purchasing More Than Expected,which

question 189

Multiple Choice

If firms find that consumers are purchasing more than expected,which of the following would you expect?

• A)Aggregate expenditure will likely be greater than GDP.
• B)Aggregate expenditure will likely be less than GDP.
• C)The economy will adjust to macroeconomic equilibrium as inventories rise,and production and employment fall.
• D)The economy will adjust to macroeconomic equilibrium as inventories fall,and production and employment fall.

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Definitions:

M'Naghten Rule

A legal standard used to determine whether a defendant was insane at the time of committing a crime and therefore not responsible for their actions.

Insanity

A legal and psychological term referring to a mental disorder that prevents an individual from distinguishing between right and wrong, or impairs the ability to conduct daily activities normally.

Not Guilty

A legal plea or court's verdict indicating that an accused individual is not responsible for committing the crime in question.

Involuntary Commitment

The practice of confining a person to a psychiatric hospital or ward against their will or without their consent, based on the assessment that they pose a risk to themselves or others.