If the Output Level Is Such That the Aggregate Expenditure

question 44

Multiple Choice

If the output level is such that the aggregate expenditure line lies below the 45-degree line,which of the following is true?

• A) Aggregate expenditure is greater than output,so inventories will increase and output will be raised.
• B) Aggregate expenditure is greater than output,so inventories will decrease and output will be increased.
• C) Aggregate expenditure is less than output,so inventories will decrease and output will be raised.
• D) Aggregate expenditure is less than output,so inventories will increase and output will be lowered.
• E) Aggregate expenditure is greater than output,so inventories will increase and output will be lowered.

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Definitions:

Arteries Dilate

The process by which arteries expand or widen, increasing blood flow and lowering blood pressure.

Arteries Contract

Refers to the process where arteries narrow or decrease in diameter, which usually regulates blood flow and blood pressure.

Heart Rate

The quantity of heart pulsations measured within a specific duration, usually denoted in beats per minute (bpm).

Spotlight Effect

The belief that others are more focused on us than they actually are.