If Aggregate Expenditures (AE)are Less Than Aggregate Output (Real GDP)

question 43

Multiple Choice

If aggregate expenditures (AE) are less than aggregate output (real GDP) , then firms will:

• A)have unplanned inventory accumulation.
• B)earn above-average profits.
• C)expand production and hire more workers.
• D)be raising their prices.

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Definitions:

Metaneeds

According to Maslow, higher-level psychological needs for realizing one's full potential and expressing one's uniqueness.

Full Development

The complete growth or realization of an individual's potential or capabilities.

Safety Needs

Maslow's hierarchy of needs classifies safety needs as the second tier, which encompasses personal security, employment, resources, health, and property protection.

Structure

Structure refers to the arrangement or organization of components within a system, leading to an orderly and functional whole.