If Aggregate Expenditures Exceed GDP in a Private Closed Economy

question 51

Multiple Choice

If aggregate expenditures exceed GDP in a private closed economy,

• A) leakages will exceed injections.
• B) planned investment will exceed saving.
• C) unplanned investment in inventories will occur.
• D) saving will exceed planned investment.

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Definitions:

Dynamic Concept

A notion or idea that is subject to change and capable of evolution or development over time.

Fully Functioning Person

A term used by Carl Rogers to describe an individual who is living optimally with self-awareness and authenticity, open to experience, and continually growing.

Optimal Level

The most favorable or efficient degree or state of something for achieving a specific outcome or purpose.

Inner Value System

A personal set of ethics, morals, and values that guide an individual's behavior and decision-making.