If the Level of Real GDP Is $14 Trillion While

question 90

Multiple Choice

If the level of real GDP is $14 trillion while aggregate planned expenditure is $15 trillion, then

• A) real GDP increases and planned expenditure decreases reaching equilibrium in the middle.
• B) inventories fall more than planned, leading firms to increase production.
• C) inventories rise more than planned, leading firms to increase production.
• D) inventories rise more than planned, leading firms to cut production.
• E) aggregate planned expenditure decreases to reach the equilibrium of $14 trillion.

---

Definitions:

Dual/Multiple Relationships

Occurs when a professional engages in more than one relationship with a client, potentially compromising professionalism or objectivity.

Professional Judgment

The ability to make decisions and draw conclusions in one’s professional field based on expertise, experience, and ethics.

Exploiting the Client

Acting unethically by taking unfair advantage of a client for personal, financial, or other gains, contradicting professional ethical standards.

Dual Relationship

Ethical dilemma arising when a professional holds more than one role with a client, potentially compromising objectivity and confidentiality.