If Aggregate Planned Expenditures Exceed Real GDP, Then

question 152

Multiple Choice

If aggregate planned expenditures exceed real GDP, then

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

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Definitions:

Social Awareness

The ability to understand and respond to the feelings, thoughts, and behaviors of others in a social context.

Vulnerability

Vulnerability is the state of being open to harm, attack, or damage, either physically or emotionally, often characterized by uncertainty, risk, and exposure.

Psychological State

An individual's mental condition in terms of thoughts, feelings, and emotional wellbeing at a given time.

Positive Expectations

The belief or outlook that future outcomes will be favorable or beneficial, often influencing motivation, performance, and the approach to tasks or goals.