Refer to the Figure Below

question 53

Multiple Choice

Refer to the figure below. Based on the Keynesian cross diagram, if output equals 5,000, planned aggregate expenditure is ______ output, and firms will ______ production in response.

• A)less than; decrease
• B)greater than; decrease
• C)equal to; not change
• D)less than; increase

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Definitions:

Outstanding Checks

Outstanding checks refer to checks that have been written and recorded in the issuing entity's financial records but have not yet been cashed or cleared by the bank.

Notes Receivable

Notes receivable are written promises for amounts to be received by a business, typically indicating interest terms, due dates, and other conditions under which the funds are to be repaid.

NSF Check

Stands for Non-Sufficient Funds Check, which is a check that cannot be processed because the writer’s account does not have enough funds.

Outstanding Checks

Checks that have been written and recorded in the issuing account but have not yet been cashed or cleared by the bank.