If Aggregate Planned Expenditure Is Less Than Real GDP

question 384

Multiple Choice

If aggregate planned expenditure is less than real GDP

• A) real GDP will increase.
• B) real GDP remain unchanged.
• C) real GDP will either decrease or increase, depending on the MPC.
• D) inventories will increase above their target level and real GDP will decrease.

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Definitions:

Picket Lines

A form of protest or demonstration by workers, often at entrances to a workplace, aimed at publicizing a labor dispute or discouraging people from crossing the line during a strike.

Discriminatory Manner

Involves treatment or consideration based on class or category rather than individual merit; in ways that are unfair or prejudicial.

Employment Management

The practice of overseeing and directing all aspects of an individual's work life within an organization, including hiring, training, and evaluating.

Trade Union

An organization formed by workers to protect their rights and interests through collective bargaining.