When the AE Line Lies Above the 45° Line

question 262

Multiple Choice

When the AE line lies above the 45° line,

• A) there are unplanned decreases in inventories.
• B) aggregate planned expenditure is less than real GDP.
• C) there are unplanned increases in inventories.
• D) real GDP exceeds aggregate planned expenditure.
• E) the price level is rising.

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Definitions:

Mutator Methods

Methods designed to set or modify the values of an object's attributes while keeping the encapsulation principle intact.

Integer Values

Whole numbers that can be positive, negative, or zero, not including decimals or fractions.

Instance Variable

A variable declared inside a class but outside any method, and is unique to each instance of the class.

Preconditions

Conditions that must be true before a function or operation can proceed in programming.