Within the Framework of the Aggregate Expenditures Model, What Will

question 26

Multiple Choice

Within the framework of the aggregate expenditures model, what will happen if an economy is operating at a real GDP greater than full-employment real GDP?

• A) An inflationary gap exists.
• B) Real GDP will fall.
• C) The inventories of firms will rise.
• D) Firms will cut back on their current rate of output.

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Definitions:

Impulsive Behavior

Acts characterized by little or no forethought, reflection, or consideration of the consequences.

Violent Video Games

Video games that involve and often emphasize themes of violence, aggression, and conflict.

Aggression

Behavior intended to harm or injure another person, either physically or psychologically.

Justified

Deemed or proven to be right or reasonable under the circumstances.