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:

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Freud

Sigmund Freud, an Austrian neurologist who founded psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

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