When Aggregate Planned Expenditure Is Less Than GDP

question 72

Multiple Choice

When aggregate planned expenditure is less than GDP,

• A)the economy definitely is at its equilibrium expenditure and firms do not change production.
• B)firms increase production until the economy reaches equilibrium expenditure.
• C)the economy might be at its equilibrium expenditure and if it is, firms do not change their production.
• D)the economy definitely is at its equilibrium expenditure but even so, firms decrease production.
• E)firms decrease production until the economy reaches equilibrium expenditure.

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Definitions:

Difficult to Grasp

Describes concepts, objects, or ideas that are not easily understood or comprehended.

Openness

A personality trait that features qualities like intellectual curiosity, creativity, preference for novelty, and a wide range of interests.

Stability

In psychological terms, stability refers to the consistency of individual differences over time in aspects of personality, intelligence, or behavior.

Broader Personality Factor

A term possibly referring to overarching dimensions of personality, such as those described in trait theory, which include broad traits like extraversion or agreeableness.