Equilibrium GDP Will Not Exist Where Output Exceeds Aggregate Demand

question 100

Multiple Choice

Equilibrium GDP will not exist where output exceeds aggregate demand because businesses will notice that

• A)their profits are positive.
• B)inventory stocks are building up.
• C)inventory stocks are being depleted.
• D)their level of depreciation is rising.

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Definitions:

Suckers

An organ in some animals specialized for adhesion, or a shoot from the base of a plant stem that can develop into a new plant.

Corms

Short, vertical, swollen underground plant stems that serve as storage organs to survive winter or dry months and to propagate new plants.

Germination

The process by which a plant grows from a seed or similar structure.

Imbibition

The process of absorption of water by plant tissues or seeds, often leading to swelling, which is critical for seed germination and plant growth.