If the Level of Real GDP Is $4 Trillion While

question 69

Multiple Choice

If the level of real GDP is $4 trillion while aggregate planned expenditure is $5 trillion, then

• A) aggregate planned expenditure decreases to reach the equilibrium of $4 trillion.
• B) inventories rise more than planned, leading firms to cut production.
• C) inventories fall more than planned, leading firms to increase production.
• D) real GDP increases and planned expenditure decreases reaching equilibrium in the middle.
• E) inventories rise more than planned, leading firms to increase production.

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Definitions:

Writ of Execution

A writ that puts in force a court’s decree or judgment.

Exempt Property

Assets that are protected by law from being taken by creditors to satisfy debts.

Debtor's Home

The primary residence of an individual who owes money to creditors; it can be protected under certain bankruptcy laws.

Exempt Property

Property that a debtor is allowed to keep from creditors' claims in a bankruptcy proceeding, as defined by law, to ensure basic living standards.