If Aggregate Expenditure Is Less Than GDP, How Will the Economy

question 19

Multiple Choice

If aggregate expenditure is less than GDP, how will the economy reach macroeconomic equilibrium?

• A)Inventories will decline, and GDP and employment will decline.
• B)Inventories will rise, and GDP and employment will decline.
• C)Inventories will decline, and GDP and employment will rise.
• D)Inventories will rise, and GDP and employment will rise.
• E)Inventories will rise, GDP will rise, and unemployment will fall.

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Definitions:

Pulse

The rhythmic expansion and contraction of arteries each time the heart beats, often felt at various points on the body as a heartbeat.

Carotid Artery

A major artery supplying blood to the head and neck region, divided into internal and external branches.

Abdominal Aorta

The major blood vessel in the abdomen that supplies blood to the lower part of the body.

Gastric Artery

Any of the arteries supplying blood to the stomach, vital for providing the necessary oxygen and nutrients for gastric function.