-In the Figure Above, If Real GDP Is $10 Trillion

question 27

Multiple Choice

-In the figure above, if real GDP is $10 trillion, aggregate planned expenditure is

• A) equal to $10 trillion and there are no unplanned inventory changes.
• B) less than $10 trillion and unplanned inventory changes are positive.
• C) more than $10 trillion and unplanned inventory changes are negative.
• D) equal to $10 trillion and unplanned inventory changes are negative.
• E) equal to $10 trillion and unplanned inventory changes are positive.

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Definitions:

Horizon

The line at which the earth's surface and the sky appear to meet, or metaphorically, the limit of a person's knowledge, experience, or interest.

Elliptical

Having an oval shape or relating to an ellipse; also used metaphorically to describe speech or writing that is obscure or lacks completeness.

Perceptual Constancy

The brain's ability to perceive objects as unchanging despite changes in viewing conditions, such as distance or lighting.

Retinal Images

Images formed on the retina of the eye as the result of the refraction of light by the cornea and lens.