If Aggregate Planned Expenditure Is Greater Than GDP, Then

question 112

Multiple Choice

If aggregate planned expenditure is greater than GDP, then

• A) inventory investment is smaller than planned.
• B) inventory investment is larger than planned.
• C) production is too high.
• D) a recession will result.
• E) the consumption function will shift downward to restore the equilibrium.

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Definitions:

Expiratory Reserve Volume (ERV)

The additional air that can be forcibly exhaled after the completion of a normal, passive exhalation.

Vital Capacity (VC)

The maximum amount of air a person can expel from the lungs after a maximum inhalation, a measure of lung function.

Inspiratory Reserve Volume (IRV)

The additional amount of air that can be inhaled after a normal inhalation, contributing to total lung capacity.

Expiratory Capacity (EC)

The maximum volume of air that can be exhaled from the lungs after a normal tidal volume exhalation.