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:

Individualistic Culture

Characterizes societies that value personal freedom and independence, with an emphasis on individual achievements and rights.

Labor Costs

Expenses related to compensating employees, including wages, benefits, and taxes.

Culture Shock

The experience of disorientation and stress that results from being in an unfamiliar cultural environment.

Long-Term Oriented

A focus or perspective that emphasizes planning and prioritizing future rewards over immediate outcomes.