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:

Behavioral Excesses

Actions or behaviors that occur too frequently or intensely, often causing problems or distress.

Deficits

Shortfalls or deficiencies in a context, such as budget deficits where expenses exceed revenues or in skills where current abilities do not meet a required standard.

Overt Behaviors

Observable actions or reactions of an individual in response to external or internal stimuli.

Consequences

Outcomes or effects that follow an action or decision.