If Planned Aggregate Expenditure in the Economy Is 400 and the Level

question 85

Multiple Choice

If planned aggregate expenditure in the economy is 400 and the level of national output is 250, then which of the following is true?

• A) There will be excess demand for goods and services in the economy.
• B) The unsold stocks of goods with firms will increase sharply.
• C) Firms will have to reduce production since aggregate demand in the economy will fall.
• D) The quantity of goods and services demanded in the economy will be equal to the quantity

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Definitions:

Superego

In psychoanalytic theory, the part of the personality that acts as a moral center, guiding behavior according to learned societal standards.

Collective Unconscious

In Jungian theory, the universal memories and experiences of humankind, represented in the symbols, stories, and images (archetypes) that occur across all cultures.

Personality

The combination of characteristics or qualities that form an individual's distinctive character and behavioral patterns.

Psychodynamic Theory

A psychological perspective that emphasizes the systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.