In the Aggregate Expenditures Model, If Aggregate Expenditures Are Less

question 177

Multiple Choice

In the aggregate expenditures model, if aggregate expenditures are less than real GDP,

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

---

Definitions:

Shore

The land along the edge of a sea, lake, or other large body of water.

Sunlight

The natural light emitted by the Sun, providing the primary energy source for Earth's climate and ecology.

Migratory Birds

Birds that travel from one region to another at regular times often over long distances, typically for breeding or weather conditions.

Excess Water

A surplus amount of water beyond what is needed or used, often leading to conditions like waterlogging in plants or overhydration in humans.