If Prices Are Fixed, When Aggregate Planned Expenditure Exceeds Real

question 344

Multiple Choice

If prices are fixed, when aggregate planned expenditure exceeds real GDP, then

• A) inventories decrease, signaling firms to increase production and increase real GDP.
• B) inventories increase, signaling firms to decrease production and decrease real GDP.
• C) profits fall, signaling firms to decrease production and decrease real GDP.
• D) None of the above answers are correct.

---

Definitions:

Pro-Se

Representing oneself in a legal proceeding without the assistance of a lawyer.

Cross-Examine

The questioning of a witness in a court of law by the party opposing the one who called the witness, aimed at assessing the veracity or credibility of their testimony.

Formal Rulemaking

A regulatory process that requires public notice, opportunity for comment, and a public hearing before a rule can be adopted, often involving a trial-like hearing.

Administrative Law Judge

An official who presides over hearings and disputes involving federal, state, or local administrative agencies, making decisions or recommendations.