If the Economy Is Operating at a Point Where the Aggregate

question 59

Multiple Choice

If the economy is operating at a point where the aggregate expenditure line lies below the 45-degree line (AE = GDP) ,

• A)total spending is more than total output.
• B)unwanted business inventories will increase.
• C)businesses will reduce their future production.
• D)both b and c are correct.

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Definitions:

Overweight

A condition characterized by weight that is higher than what is considered healthy for a given height, but not obese.

Body Mass Index

A numerical value derived from the weight and height of an individual, used to classify underweight, healthy weight, overweight, and obesity.

Obese

A medical condition characterized by excessive body fat that presents a risk to health.

Body Fat

The portion of the human body composed of fat cells, which serve as energy storage and insulation.