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:

Milliliters

A unit of volume in the metric system, equivalent to one thousandth of a liter or approximately 0.034 fluid ounces.

Milliliters

A unit of volume in the metric system, equivalent to one-thousandth of a liter, used to measure liquids or gases.

Liters

A metric unit of volume equal to one cubic decimeter or 1,000 cubic centimeters, often used for measuring liquids.

Milligrams

A unit of mass equal to one thousandth of a gram, used in measurements of small quantities of substances.