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:

Change Agents

Individuals or entities that act as catalysts for change within an organization, promoting and facilitating innovation and improvement.

Transformational Change

A fundamental, radical reorganization and rethinking of business operations to achieve significant improvements in performance.

Organizational Change

The process through which a company or institution changes its structure, strategies, operational methods, or culture to effect change within the organization and respond to internal and external pressures.

Reactive Change

Change that occurs in response to external pressures or unforeseen situations, as opposed to being planned in advance.