The Figure Shows Planned Aggregate Expenditure and Output for an Economy

question 26

Multiple Choice

The figure shows planned aggregate expenditure and output for an economy. Suppose that the economy starts at PAE₂. What change would cause a move from PAE₂ to PAE₁?

• A) Consumption increases.
• B) Investment increases.
• C) Exports increase.
• D) Government spending decreases.

---

Definitions:

Adaptive Corporate Culture

A corporate culture that is flexible, responsive, and able to change in response to external conditions or internal strategies.

Outwardly Focused

A perspective or approach that prioritizes external factors and dynamics, such as customer needs, market trends, and the broader community, over internal concerns.

Stakeholders

Individuals, groups, or organizations that have an interest or concern in an organization's activities, decisions, and success, including employees, customers, suppliers, and investors.

Attraction-Selection-Attrition (ASA) Theory

A theory in organizational psychology that explains how organizations tend to attract, select, and retain individuals with similar personalities and values.