What Changes in the Income-Expenditure Model If Spending Exceeds GDP

question 50

Multiple Choice

What changes in the income-expenditure model if spending exceeds GDP?

• A) consumption
• B) prices
• C) expenditures
• D) inventories
• E) income

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Definitions:

Increases

The act or process of becoming larger or greater in size, amount, number, or degree.

Susceptible to Erosion

A condition describing materials or landscapes that are easily worn away or removed by the action of water, wind, ice, or human activities.

Bedrock

Solid rock underlying loose deposits such as soil or alluvium.

Turbulent Part

A section or aspect of a fluid flow characterized by chaotic changes in pressure and flow velocity.