If Economists Forecast an Increase in Aggregate Expenditure, Which of the Following

question 1

Multiple Choice

If economists forecast an increase in aggregate expenditure, which of the following is likely to occur?

• A)GDP will rise.
• B)GDP will fall.
• C)Wages will fall.
• D)Inventories will rise.
• E)Unemployment will rise.

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Definitions:

Stock Index

A measurement of a section of the stock market, usually representing the performance of certain stocks or industries.

Soybean Future

A standardized contract for the future sale or purchase of soybeans, traded on a commodities exchange.

Wheat Spot Price

The current market price at which wheat can be bought or sold for immediate delivery.

Profit

The financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.