If Aggregate Planned Expenditure Is Less Than Real GDP

question 384

Multiple Choice

If aggregate planned expenditure is less than real GDP

• A) real GDP will increase.
• B) real GDP remain unchanged.
• C) real GDP will either decrease or increase, depending on the MPC.
• D) inventories will increase above their target level and real GDP will decrease.

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Definitions:

Anti-assignment Clause

A provision in a contract that prohibits the transfer of rights or delegation of duties under the contract to another party without consent.

Assignment

A task or piece of work allocated to someone as part of a job or course of study.

Lawsuit

A legal action initiated by one party against another for the enforcement or protection of a right, or the redress or prevention of a wrong.

Debris

Scattered fragments, typically of something wrecked or destroyed.