If Aggregate Planned Expenditures Are Less Than Real GDP, Then

question 38

Multiple Choice

If aggregate planned expenditures are less than real GDP, then

• A)there is no equilibrium level of real GDP.
• B)inventories decrease below their planned levels and businesses increase their production.
• C)inventories increase above their planned levels and businesses decrease their production.
• D)unplanned inventory changes equal zero.
• E)inventories increase above their planned levels and businesses increase their production.

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Definitions:

Ethical Investing

Ethical investing involves making investment decisions based on ethical principles, including environmental sustainability, social justice, and corporate governance.

Proprietorship

A business structure owned by a single individual who is responsible for its liabilities and entitled to its profits.

Taxed

The imposition of a financial charge or other levy upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Double Taxation

A taxation principle referring to income taxes that are paid twice on the same source of income, common in C-type corporations where income is taxed at both the corporate and shareholder levels.