If Planned Expenditures Equal $19 Trillion When Real GDP Is

question 201

Multiple Choice

If planned expenditures equal $19 trillion when real GDP is $19.5 trillion, then

• A) inventories will decrease by $0.5 trillion.
• B) actual investment will exceed planned investment.
• C) there will be excess demand for most goods.
• D) the economy must have a trade surplus to sell the excess goods and services.

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Definitions:

Leading Indicators

Early signs or metrics that predict future performance or trends in the economy, markets, or other systems.

Estimating Labor Surplus

The process of determining when there are more workers available than there are positions for them, often leading to unemployment or underemployment.

Forecasting Labor Supply

Predicting the future availability of workers in the market based on factors such as demographics, education, and employment trends.

Evaluating Outcomes

The process of measuring, assessing, and analyzing the results of a program, policy, or intervention to determine its effectiveness or impact.