If Real GDP Equals Aggregate Planned Expenditure, Then Inventories

question 204

Multiple Choice

If real GDP equals aggregate planned expenditure, then inventories

• A) rise above their target levels.
• B) fall below their target levels.
• C) equal their target levels.
• D) are either above or below their target levels depending on whether planned inventories are above or below their target levels.
• E) None of the above answers is necessarily correct because there is no relationship between inventories and aggregate planned expenditure.

---

Definitions:

Family Empowerment Model

A strategy aimed at strengthening families’ capacities to act on their own behalf and improve their child's well-being through access to information, resources, and support.

Worldview

The fundamental cognitive orientation of an individual or society encompassing all the beliefs and values that shape how they interpret the world and interact with it.

Hierarchical Structure

A hierarchical structure is an organizational layout where individuals or elements are ranked according to levels of importance or authority.

Principle of Wholeness

A concept suggesting that systems or entities are more than the sum of their parts and should be viewed as complete wholes.