If There Is an Unplanned Decrease in Inventories, Aggregate Planned

question 97

Multiple Choice

If there is an unplanned decrease in inventories, aggregate planned expenditure is

• A)greater than real GDP, and firms increase production.
• B)greater than real GDP, and firms decrease production.
• C)less than real GDP, and firms increase production.
• D)less than real GDP, and firms decrease production.
• E)greater than real GDP, and firms increase investment.

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Definitions:

Weighted Additive Rule

This rule is a decision-making strategy where alternatives are evaluated by multiplying each attribute's importance weight by its quantitative value, then summing these products to determine the best option.

Compensatory Rule

A decision rule used in consumer choice where the negative aspects of a product can be compensated by its positive aspects.

Price-Quality Relationship

The perceived association between the cost of a product or service and its quality, influencing consumer decision-making.

Product Signal

Indicators or features of a product that communicate its quality, authenticity, or prestige to consumers.