If Aggregate Planned Expenditures Are Less Than Real GDP,then

question 87

Multiple Choice

If aggregate planned expenditures are less than real GDP,then

• A)unplanned inventory changes equal zero.
• B)there is no equilibrium level of real GDP.
• C)inventories increase above their planned levels and businesses increase their production.
• D)inventories increase above their planned levels and businesses decrease their production.
• E)inventories decrease below their planned levels and businesses increase their production.

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Definitions:

Overregularization

A language development error where children apply standard grammatical rules too widely, leading to mistakes like "goed" instead of "went."

Overanalyzing

The process of excessively thinking about or analyzing something in a way that is more complicated or detailed than necessary.

Overarching

Encompassing or covering broadly; often used to describe something that is inclusive of a wide range of ideas or aspects.

Practical Intelligence

The ability to solve everyday problems by utilizing knowledge gained from experience in contrast to theoretical or academic knowledge.