If Total Intended Spending Precisely Equals GDP

question 53

Multiple Choice

If total intended spending precisely equals GDP

• A) inflation soars.
• B) consumer spending begins to decline.
• C) expected rates of return exceed interest rates.
• D) unemployment rises.
• E) GDP tends to remain unchanged.

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Definitions:

Total Expenditures

The sum total of all spending or expenses incurred by an individual, business, or government.

Demand Curve

A graphical representation that shows the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good.

Demand Curve

A diagram that illustrates the connection between a product's cost and the amount of it consumers want to buy at various prices.