In a Private Closed Economy, When Aggregate Expenditures Exceed GDP

question 118

Multiple Choice

In a private closed economy, when aggregate expenditures exceed GDP,

• A) GDP will decline.
• B) business inventories will rise.
• C) saving will decline.
• D) business inventories will fall.

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Definitions:

Social Facilitation Theory

The idea that the presence of others affects an individual's performance, often enhancing the performance on simple tasks and impairing it on complex tasks.

Dominant Response

The most likely action or behavior to be displayed by an individual in a given situation, often resulting from practice, habit, or genetic predisposition.

Evaluation Apprehension

Anxiety or fear regarding being judged or evaluated by others.

Human Cultural Group

A human cultural group refers to people sharing common cultural characteristics, practices, beliefs, and values, distinguishing them from other groups.