If Planned Aggregate Expenditure Is Above Potential GDP and Planned

question 164

Multiple Choice

If planned aggregate expenditure is above potential GDP and planned aggregate expenditure equals GDP,then

• A)actual inventory investment will be less than planned inventory investment.
• B)actual inventory investment will be greater than planned inventory investment.
• C)the economy is in an expansion.
• D)the economy is at full employment.

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Definitions:

Cognitive School

The cognitive school of thought in psychology focuses on the study of mental processes including perception, memory, judgment, and reasoning.

Humanistic School

A psychological perspective that emphasizes individual potential for growth and the role of unique perceptions in guiding behavior and mental processes.

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A French heroine and military leader during the Lancastrian phase of the Hundred Years' War, who was canonized as a Roman Catholic saint.

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