If Aggregate Planned Expenditure Is Less Than Real GDP,in the Short

question 6

Multiple Choice

If aggregate planned expenditure is less than real GDP,in the short run

• A) aggregate planned expenditure will increase.
• B) exports change to restore equilibrium.
• C) the price level will fall.
• D) real GDP will decrease.

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Definitions:

Diversification Benefits

Advantages obtained from investing in a variety of assets, which helps to reduce risk by spreading exposure across different investments.

Purchase Accounting

An accounting method used to consolidate the financial statements of a acquiring company and the company it has acquired.

Net Asset Value

Net Asset Value is the total value of an entity’s assets minus its liabilities, often used in relation to the value of an investment fund.

Unlevered Cost

The cost of an investment or project without taking into account the effect of borrowed funds, often used to assess the project's risk without financing impact.