In the Aggregate Expenditure (AE) Model, When Real GDP Exceeds

question 94

Multiple Choice

In the aggregate expenditure (AE) model, when real GDP exceeds aggregate planned expenditure, actual inventories ________ planned inventories and real GDP ________.

• A) exceed; increases
• B) exceed; decreases
• C) are less than; increases
• D) are less than; decreases
• E) exceed; does not change

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Definitions:

Obscenity

Material or conduct judged by legal standards to be offensive, morally corruptive, and not protected by freedom of speech due to its lewd nature.

First Amendment

An amendment to the United States Constitution that protects freedoms, including speech, religion, press, assembly, and the right to petition the government.

Double Jeopardy

is a legal principle that prevents an individual from being tried twice for the same crime on the same set of facts.

Same Crime

A principle indicating the prosecution or judgment of an individual for a specific criminal offense without being tried or punished for the same offense more than once.