Suppose That at a Particular Level of Real GDP, the Unintended

question 33

Multiple Choice

Suppose that at a particular level of real GDP, the unintended change in inventories is zero.How will this affect the level of real GDP?  

• A) The level of real GDP will be less than the equilibrium level of real GDP demanded. 
• B) The level of real GDP will be greater than the equilibrium level of real GDP demanded. 
• C) The level of real GDP will be the equilibrium level of real GDP demanded. 
• D) The level of real GDP will first be greater, and then less, than the equilibrium level of real GDP.

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Definitions:

Transverse Process

Lateral bony projections off the vertebrae to which muscles and ligaments attach, aiding in spinal movement and stability.

Cervical Vertebrae

The seven vertebrae in the human neck that support the head and allow for its movement.

External Urethral Sphincter

A muscle that controls the passage of urine through the urethra.

Ischial Ramus

The bony projection that extends from the ischium (part of the hip bone), connecting to the pubis, forming part of the pelvis structure.