If Firms Find That Consumers Are Purchasing More Than Expected

question 246

Multiple Choice

If firms find that consumers are purchasing more than expected, which of the following would you expect?

• A)Aggregate expenditure will likely be greater than GDP.
• B)Aggregate expenditure will likely be less than GDP.
• C)The economy will adjust to macroeconomic equilibrium as inventories rise, and production and employment fall.
• D)The economy will adjust to macroeconomic equilibrium as inventories fall, and production and employment fall.
• E)Firms will see inventories rising.

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Definitions:

Motivational Interventions

Strategies or techniques used to enhance individuals' motivation aimed at encouraging participation, effort, and persistence in activities, particularly in educational settings.

Self-Regulation

The ability of an individual to manage their thoughts, emotions, and behaviors to achieve long-term goals.

Observational Learning

A learning process through which individuals acquire new behaviors or knowledge by watching and imitating others.

Reproduction

The biological process by which new individual organisms are produced by their parents.