If Real GDP Is Greater Than Planned Aggregate Spending

question 35

Multiple Choice

If real GDP is greater than planned aggregate spending:

• A) unplanned inventory investment is negative.
• B) real GDP will fall.
• C) the economy is in equilibrium.
• D) real GDP will rise.

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Definitions:

Compounded Monthly

Interest calculation method where interest is added to the principal balance monthly, leading to interest on interest.

Monthly Payments

Regular payments made each month on a loan, mortgage, or other financial agreement.

Amortization Schedule

A table detailing each periodic payment on a loan over time, breaking down the amounts going towards principal and interest.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage.