In the Aggregate Expenditures Model, If Aggregate Expenditures (AE)are Less

question 77

Multiple Choice

In the aggregate expenditures model, if aggregate expenditures (AE) are less than GDP, then:

• A)inventory is depleted.
• B)inventory is unchanged.
• C)employment decreases.
• D)employment increases.

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Definitions:

Creative Destruction

An economic theory that suggests that old industries or technologies are destroyed and replaced by new ones for economic growth and development.

Disruption

A significant disturbance or interruption to the normal flow or process, often leading to a need for adjustment or a new way of thinking.

Social Entrepreneurship

An approach to business where solving social problems and issues is as important as profitability, innovatively blending commercial and social objectives.

Enterprising Social Innovation

The creation and implementation of novel solutions to social problems that harness entrepreneurial principles to achieve sustainable, impactful change.