-If Aggregate Planned Expenditure Is Less Than Real GDP, Then

question 49

Multiple Choice

-If aggregate planned expenditure is less than real GDP, then in the short run

• A) aggregate planned expenditure will increase.
• B) exports change to restore equilibrium.
• C) the price level will fall.
• D) real GDP will decrease.

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Definitions:

Doomsday Group

A collective or organization that predicts or prepares for a catastrophic end of the world.

Formal Reasoning

The cognitive process of thinking logically and systematically about abstract concepts and problems, often associated with the ability to perform operations in a formal operational stage of development.

Informal Reasoning

The process of thinking about issues in an everyday, non-structured manner, often without strict rules of logic.

Multitasking

The ability to perform more than one task or activity over a short period, often by rapidly switching focus from one task to another.