Which of the Following Most Completely Describes the Workings of the Aggregate

question 87

Multiple Choice

Which of the following most completely describes the workings of the aggregate expenditures model?

• A)If aggregate expenditures are less than aggregate output, then there is unplanned inventory accumulation, and real GDP will decrease.
• B)If aggregate expenditures are greater than aggregate output, then there is unplanned inventory depletion, and real GDP will increase.
• C)Aggregate output generates an equal amount of aggregate spending.
• D)Both a. and b. above are correct.

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Definitions:

Expatriates

Individuals who live outside their native country, often for work reasons.

Home Country

The nation where a company is headquartered or an individual's country of origin.

Arab Countries

Nations in the Arab world, spanning from the Middle East to parts of North Africa, characterized by shared linguistic, cultural, and historical ties.

Conservatively

Acting with caution, prudence, or in a manner that tends to preserve existing conditions or to minimize risk.