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:

Central Route

A method of persuasion that involves deeply processing the content of the message, considering its logic and arguments.

Persuasion

The act or process of influencing someone's beliefs, attitudes, or behaviors through argument, reasoning, or appeal.

Foot-In-The-Door Technique

A persuasive strategy where agreeing to a small initial request increases the likelihood of compliance with a larger request later.

Elementary School

An educational institution for young children that provides the first years of compulsory education.