When Aggregate Expenditure Is Greater Than GDP, Then There Will

question 68

Multiple Choice

When aggregate expenditure is greater than GDP, then there will be an

• A)unplanned increase in inventories and GDP will increase.
• B)unplanned decrease in inventories and GDP will increase.
• C)unplanned increase in inventories and GDP will decrease.
• D)unplanned decrease in inventories and GDP will decrease.

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Definitions:

Corn Prices

The cost at which corn is bought or sold, which can fluctuate based on factors like supply, demand, and market conditions.

Supply and Demand Curves

Graphical representations used in economics to show the relationship between the quantity of a good that producers wish to sell at various prices and the quantity that consumers wish to buy.

Decrease in Demand

A reduction in the quantity of a product or service that consumers are willing or able to purchase at a given price.

Quantity Supplied

The amount of a good or service that producers are willing to sell at a given price over a specified period.