If Aggregate Planned Expenditure Is Less Than Real GDP Then

question 197

Multiple Choice

If aggregate planned expenditure is less than real GDP then

• A) consumers increase their planned expenditure until aggregate planned expenditure increases to equal real GDP.
• B) firms increase their planned expenditure until aggregate planned expenditure increases to equal real GDP.
• C) firms' inventories will increase and real GDP will decrease as production falls.
• D) firms' inventories will decrease and real GDP will decrease as production falls.

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Definitions:

Higher-Order Conditioning

A process in classical conditioning in which a conditioned stimulus is paired with a new neutral stimulus, creating a second (often weaker) conditioned response.

Generalization

The process by which an animal or a person responds to a new stimulus in a way that's similar to how they responded to a previously encountered stimulus.

Operant Conditioning

An approach to education that utilizes incentives and penalties to shape behavior.

Conditioned Taste Aversions

A learned response where an individual avoids a food after a negative experience, demonstrating how tastes become associated with illness or discomfort.