If an Unintended Increase in Business Inventories Occurs at Some

question 103

Multiple Choice

If an unintended increase in business inventories occurs at some level of GDP, then GDP

• A) entails a rate of aggregate expenditures in excess of the rate of aggregate production.
• B) may be either above or below the equilibrium output.
• C) is too low for equilibrium.
• D) is too high for equilibrium.

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Definitions:

Increased Preload

A condition where the volume of blood in the heart's ventricles before contraction (end-diastolic volume) is increased, affecting the heart's function.

Decreased Afterload

A reduction in the resistance against which the heart must pump blood, often leading to improved cardiac function.

Diminished Respiratory Muscle

Weakening or reduced functionality of the muscles involved in breathing, which can impact respiratory efficiency and lead to breathing difficulties.

Age-Related Change

Physical or cognitive alterations that occur as part of the natural aging process.