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

question 77

Multiple Choice

In the aggregate expenditures model, if aggregate expenditures (AE) equal $6 trillion and GDP equals $7 trillion, then:

• A) inventory depletion equals − $1 trillion.
• B) inventory accumulation equals $1 trillion.
• C) investment equals $1 trillion.
• D) investment equals − $1 trillion.

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Definitions:

Association

A relationship or connection between two or more variables, where changes in one variable might be related to changes in another.

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The mean academic performance score of a student, usually calculated from grades obtained in various subjects while attending high school.

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