Suppose the Equilibrium Level of Expenditure Is $18 Trillion

question 454

Multiple Choice

Suppose the equilibrium level of expenditure is $18 trillion. If real GDP is $17 trillion, then inventories are ________ their target levels and real GDP will ________.

• A) above; increase
• B) above; decrease
• C) below; increase
• D) below; decrease

---

Definitions:

Packet Sniffer

A software or hardware tool that intercepts, logs, and analyzes network packets as they are transmitted over a network, used for diagnosing network problems or for malicious activity.

Trojan Horse

A type of malware disguised as legitimate software, used by hackers to gain unauthorized access to a system.

Worm

A malicious software program that replicates itself in order to spread to other computers.

Browser Windows

Refers to the individual viewing areas within a web browser where webpages are displayed.