When Aggregate Expenditure Is Less Than GDP, Which of the Following

question 88

Multiple Choice

When aggregate expenditure is less than GDP, which of the following is true?

• A)There was an unplanned increase in inventories.
• B)Firms spent more on capital goods than they anticipated.
• C)Households bought more new homes than they anticipated.
• D)unemployment is likely to rise.
• E)All of the above must be true when aggregate expenditure is less than GDP.

---

Definitions:

Huge Number

A very large quantity, amount, or figure that is significantly above average or normal.

Sense Of Responsibility

The awareness and mindset of being accountable for one's actions or duties.

Psychosocial Moratorium

Erikson’s term for the gap between childhood security and adult autonomy that adolescents experience as part of their identity exploration.

Erikson's Theory

A developmental theory that outlines eight stages of psychosocial development, emphasizing the impact of social experience across the lifespan.