In the Aggregate Expenditure (AE) Model, When Real GDP Exceeds

question 74

Multiple Choice

In the aggregate expenditure (AE) model, when real GDP exceeds aggregate planned expenditure, actual inventories ________ planned inventories and real GDP ________.

• A) exceed; increases
• B) exceed; does not change
• C) exceed; decreases
• D) are less than; increases
• E) are less than; decreases

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Definitions:

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.

Social Learning Theory

A theory that proposes people learn new behaviors through observation and imitation of others, reinforced by external rewards or punishments.

Intermittent Reinforcement

A conditioning schedule where reinforcements are given on a partial or unpredictable basis, significantly affecting learning and behavior persistence.

Continuous Reinforcement

Continuous reinforcement is a learning strategy where a desired behavior is rewarded every time it occurs, leading to quicker learning of the behavior.