-Refer to the Above Figure

question 154

Multiple Choice

-Refer to the above figure. If real GDP is $4 trillion, then

• A) consumption expenditures are too low.
• B) unplanned inventories will decrease.
• C) unplanned inventories will increase.
• D) actual investment spending equals $1 trillion as planned investment spending plus unplanned inventory increases equal $1 trillion.

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Definitions:

Defense Mechanism

A psychological strategy unconsciously used to protect a person from anxiety arising from unacceptable thoughts or feelings.

Suppressing Unpleasant Emotions

The deliberate effort to control or hide feelings that are perceived as negative or uncomfortable.

Circumstances

The specific conditions or factors affecting a situation, event, or individual at a particular time.

Denial

A psychological defense mechanism where an individual refuses to accept reality or facts, blocking external events from awareness.