When Real GDP Exceeds Aggregate Planned Expenditure

question 55

Multiple Choice

When real GDP exceeds aggregate planned expenditure

• A)an unplanned decrease in inventories occurs.
• B)real GDP increases.
• C)firms increase production.
• D)an unplanned increase in inventories occurs.
• E)real GDP remains at its equilibrium.

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Definitions:

Social Warmth

A feeling of genuine friendliness and acceptance conveyed by individuals or groups.

Invincibility Fable

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A logical process in which a conclusion follows necessarily from the set of premises, moving from general principles to specific instances.

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