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Assume the Economy Is Currently Experiencing Aggregate Expenditures Greater Than

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Multiple Choice

Assume the economy is currently experiencing aggregate expenditures greater than aggregate income. The economy will move toward equilibrium as businesses begin to produce _____, leading to _____ employment and _____ income.


Definitions:

Open Circuit

A break in an electrical circuit preventing current from flowing.

DC Circuit

A circuit that has a constant direction of flow of electric current, typically using direct current (DC) as its power source.

Directly Proportional

A relationship between two variables where if one increases, the other one also increases at a constant ratio.

Inversely Proportional

A relationship between two variables where when one variable increases, the other decreases at a rate that maintains the constant product of the two variables.

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