The Figure Shows Planned Aggregate Expenditure and Output for an Economy

question 45

Multiple Choice

The figure shows planned aggregate expenditure and output for an economy. If output in this economy is Y₁, there should be _______ in production because PAE is _______ actual output.

• A) an increase; less than
• B) an increase; greater than
• C) no change; equal to
• D) a decrease; greater than

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Definitions:

James-Lange Theory

A theory of emotion proposing that emotions occur as a result of physiological reactions to events, meaning that the bodily response precedes and causes the emotional experience.

Roller Coaster

An amusement ride consisting of a track with steep hills, sharp curves, and sometimes loops, designed to thrill riders.

Emotional Experience

A broad term describing an individual's subjective feelings and reactions to emotions, encompassing both positive and negative emotional states.

Cannon-Bard Theory

A theory of emotion that argues physiological arousal and emotional experience occur simultaneously but independently.