In the Aggregate Expenditures Model, If Aggregate Expenditures (AE) Are

question 31

Multiple Choice

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

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

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Definitions:

Compliance

The ability of an organ or vessel to distend in response to applied pressure, often used to describe the behavior of blood vessels or lung tissue.

Popliteal Artery

The major artery supplying blood to the knee, thigh, and lower leg, located behind the knee.

Ulnar Artery

The ulnar artery is a major blood vessel of the forearm that runs from the brachial artery to the hand, supplying blood to the muscles of the forearm and the hand.

Baroreceptor Mechanism

A reflex mechanism using sensory receptors in the blood vessels to detect changes in blood pressure and stimulate responses to maintain homeostasis.