When PAE Decreases an Economy Will Move Towards

question 107

Multiple Choice

When PAE decreases an economy will move towards:

• A) lower levels of equilibrium GDP.
• B) higher levels of equilibrium GDP.
• C) constant levels of GDP.
• D) higher levels of equilibrium aggregate expenditure.

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Definitions:

Respondeat Superior

A legal doctrine that holds employers or principals responsible for the actions of their employees or agents, conducted within the scope of their employment or agency.

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The state of being responsible for something, especially in terms of legal or financial obligations.

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is explicitly granted permission or power given to an agent or representative by a principal or employer to act on their behalf.

Detailed Language

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