The Aggregate Expenditure Model Predicts a Business Cycle Expansion Occurs

question 249

Multiple Choice

The aggregate expenditure model predicts a business cycle expansion occurs when

• A) autonomous expenditure increases.
• B) aggregate supply increases.
• C) potential GDP increases.
• D) induced expenditure decreases.
• E) the aggregate planned expenditure curve shifts downward.

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Definitions:

Avoided

Deliberately staying away from or not doing something.

Listening

The active process of receiving, interpreting, and responding to verbal messages and non-verbal cues.

Resistant

The quality of being opposed to or defending against something, such as change, disease, or certain materials and substances.

Ideas

Mental concepts or thoughts that represent a person's understanding or imagination, which can be the basis for creativity, problem-solving, and innovation.