If Planned Aggregate Expenditure Is Above Potential GDP and Planned

question 5

Multiple Choice

If planned aggregate expenditure is above potential GDP and planned aggregate expenditure equals GDP, then

• A)actual inventory investment will be less than planned inventory investment.
• B)actual inventory investment will be greater than planned inventory investment.
• C)the economy is in an expansion.
• D)the economy is at full employment.
• E)the economy is in a recession.

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Definitions:

Connectionist Models

Computational models in cognitive science that simulate the neural connections in the brain, emphasizing parallel processing of information.

Central Processor

A term relating to the central executive in Baddeley and Hitch’s model of working memory, involved in reasoning, decision making, and updating and manipulating the contents of working memory.

Evolutionary Psychologists

Specialists in a field that applies evolutionary theory to understand the human mind and behavior, focusing on how evolutionary principles explain psychological traits.

Cognitive System

A system of mental processes that includes perception, memory, judgment, and reasoning, responsible for thought and learning.