When Real Output Increases, Planned Aggregate Expenditures Increase Because

question 50

Multiple Choice

When real output increases, planned aggregate expenditures increase because:

• A)autonomous expenditures increase.
• B)autonomous expenditures decrease.
• C)induced expenditures increase.
• D)induced expenditures decrease.

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Definitions:

Comparative Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower opportunity cost than its competitors, underlining the benefits of specialized production and trade.

Opportunity Cost

The relinquishment of possible rewards from other opportunities when one is selected.

Opportunity Cost

Refers to the benefits one foregoes by choosing one option over another, highlighting the trade-offs inherent in decision-making processes.

Bushel

A unit of volume that is used in the United States for measures of agricultural produce, such as grains, fruits, and vegetables.