In the Income-Expenditure Framework,if Planned Aggregate Expenditures Are Greater Than

question 105

Multiple Choice

In the income-expenditure framework,if planned aggregate expenditures are greater than real GDP,

• A)the price level will fall
• B)consumption must fall
• C)inventories will increase
• D)inventories will decrease
• E)consumption will decrease

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Definitions:

Fossil-fuel

Natural fuels such as coal, oil, and natural gas, derived from the remains of living organisms and used primarily for energy.

Industrial Order

A social and economic system characterized by the large-scale industrial production and management of goods and services, often associated with the rise of factories and mechanization.

Factory System

A method of manufacturing using machinery and division of labor, known for its role in the Industrial Revolution by significantly increasing production capabilities and changing societal structures.

Standard Oil

An American oil producing, transporting, refining, and marketing company. Established in 1870 by John D. Rockefeller and partners, it became the largest oil refiner in the world and was later broken up due to antitrust laws.