If Aggregate Expenditures Are Lower Than Real GDP

question 47

Multiple Choice

If aggregate expenditures are lower than real GDP:

• A) there will be unplanned increases in inventories.
• B) employment increases.
• C) aggregate output increases.
• D) actual real output is less than equilibrium real output.

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Definitions:

Gastropods

A class of mollusks that includes snails and slugs, characterized by their univalve shell (in snails) and distinctive crawling locomotion.

Hinged Shell

A shell structure composed of two parts connected by a flexible hinge, allowing the shell to open and close, commonly seen in bivalves like clams and oysters.

Bivalves

Aquatic molluscs that have a shell divided into two hinged parts, such as clams, oysters, mussels, and scallops.

Tubular Gut

A digestive system design where the gut forms a continuous tube through which food travels from mouth to anus.