If Planned Aggregate Expenditure Is Greater Than Total Production

question 113

Multiple Choice

If planned aggregate expenditure is greater than total production

• A)actual inventories will equal planned inventories.
• B)firms will experience an unplanned decrease in inventories.
• C)GDP will decrease.
• D)the economy is in equilibrium.

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Definitions:

Extinction

In psychology, the gradual weakening of a conditioned response by not reinforcing the conditioning stimulus.

Conditioned Forgetting

A phenomenon where memory is lost or altered due to the introduction of specific conditions or stimuli, often involving the suppression of unwanted memories.

Suppression

The conscious effort to stop thinking about certain thoughts or feelings.

Inhibition

A psychological or physiological process that reduces or suppresses the response to stimuli.