An Increase in Real GDP Leads to

question 46

Multiple Choice

An increase in real GDP leads to

• A)an increase in aggregate planned expenditure.
• B)a decrease in aggregate planned expenditure.
• C)no change in aggregate planned expenditure.
• D)a change in aggregate planned expenditure but whether the change is an increase or a decrease depends on whether nominal GDP increases or decreases.

---

Definitions:

Exponentially Distributed

characterizes a continuous probability distribution often used to model time between events in a Poisson process.

Random Variable

A random variable represents a quantity whose values are the numerical results of a random event.

Exponential Distribution

A statistical distribution that characterizes the interval between occurrences in a scenario where events happen constantly and independently, maintaining a uniform average frequency.

Exponential Distribution

A probability distribution used to model the time between events in a process in which events occur continuously and independently at a constant average rate.