If Aggregate Expenditures Exceed GDP in a Private Closed Economy

question 51

Multiple Choice

If aggregate expenditures exceed GDP in a private closed economy,

• A) leakages will exceed injections.
• B) planned investment will exceed saving.
• C) unplanned investment in inventories will occur.
• D) saving will exceed planned investment.

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Definitions:

Labor Force

The total number of people, including both the employed and the unemployed, who are currently available to work.

Union Membership

The status of being a member of an organized labor union, which represents workers in negotiations with employers over wages, benefits, and working conditions.

Public Sector

The part of the economy composed of government services and enterprises, including education, healthcare, and law enforcement.

Labor Unions

Organizations formed by workers from related fields to work collectively towards securing better working conditions, wages, and other employment benefits.