Using the Aggregate Expenditures Model, Which of the Following Occurs

question 1

Multiple Choice

Using the aggregate expenditures model, which of the following occurs if aggregate expenditures fall short of real GDP?
I. Actual investment exceeds planned investment.
II. Unemployment rises.
III. The price level will fall.
IV. The economy will experience a recessionary gap.

• A) I and II
• B) I and III
• C) I, II, and III
• D) I, II, III, and IV

---

Definitions:

Smart Phone

A mobile phone offering advanced features beyond calling and messaging, including internet access, apps, and touch-screen interfaces.

Mens Rea

The legal principle referring to the mental state of knowledge, intent, or recklessness that constitutes part of a crime.

Mail Fraud Statute

refers to a law that provides federal jurisdiction for cases involving fraudulent activities that utilize the postal system as a means to commit the fraud.

Corporate Liability

The legal obligation of a corporation to pay for damages, fines, or penalties arising from its actions or those of its employees.