If Aggregate Expenditure Is Greater Than GDP,how Will the Economy

question 96

Multiple Choice

If aggregate expenditure is greater than GDP,how will the economy reach macroeconomic equilibrium?

• A)Inventories will decline,and GDP and employment will decline.
• B)Inventories will rise,and GDP and employment will decline.
• C)Inventories will decline,and GDP and employment will rise.
• D)Inventories will rise,and GDP and employment will rise.

---

Definitions:

Volumetric Thinking

The ability to understand and manipulate three-dimensional space in the mind.

Creativity Tests

Assessments designed to measure an individual's potential to produce work that is both novel and useful.

Convergent Thinking

A cognitive process where the focus is on finding a single, correct solution to a problem, narrowing down the available options.

Divergent Thinking

A thought process used to generate creative ideas by exploring many possible solutions.