If, at Some Level of Output, Total Planned Real Expenditures

question 39

Multiple Choice

If, at some level of output, total planned real expenditures are less than real Gross Domestic Product (GDP)

• A)real GDP will rise.
• B)real GDP remains unchanged.
• C)real GDP will either fall or remain unchanged, depending on the MPC.
• D)unplanned inventories will increase and real GDP will fall.

---

Definitions:

Implied Warranty

An unwritten guarantee that a product will meet a minimum level of quality and functionality.

Merchantability

A warranty that goods sold will be of average quality, fit for the general purpose for which they are sold.

Implied Warranty

A legal term for assurances that are not explicitly stated but are assumed in the sale of goods or services, ensuring certain minimum standards.

Merchantability

A warranty that goods sold will be of satisfactory quality and fit for the purpose for which they are sold.