If Prices Are Fixed, When Aggregate Planned Expenditure Exceeds Real

question 344

Multiple Choice

If prices are fixed, when aggregate planned expenditure exceeds real GDP, then

• A) inventories decrease, signaling firms to increase production and increase real GDP.
• B) inventories increase, signaling firms to decrease production and decrease real GDP.
• C) profits fall, signaling firms to decrease production and decrease real GDP.
• D) None of the above answers are correct.

Analyze the alternation of generations in plants and how it differs from animal life cycles.

Understand how environmental changes and evolutionary pressure shaped plant diversification and adaptations.

Understand the concept of chemical equilibrium and the factors that can influence it.

Grasp the significance of the equilibrium constant and what it indicates about the position of equilibrium.

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Definitions:

Operating Cash Inflow

Cash generated from a company's normal business operations.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, making it the simplest depreciation method.

After-Tax Discount

The reduction in price or value of an item after taxes have been factored into its cost.

Income Tax Rate

The percentage of income that is paid to the government as tax. It can vary depending on the income level and jurisdiction.