Suppose the Equilibrium Level of Expenditure Is $13 Trillion

question 361

Multiple Choice

Suppose the equilibrium level of expenditure is $13 trillion. If real GDP is $14 trillion, then planned expenditures

• A) exceed real GDP, and real GDP will increase.
• B) are less than real GDP, and real GDP will decrease.
• C) are equal to real GDP, and there will be no change in real GDP.
• D) are less than real GDP, and real GDP will increase.

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Definitions:

Absolute Threshold

The minimum amount of sensory stimulation that can be detected 50% of the time.

Difference Threshold

A measure of the smallest increase or decrease in a physical stimulus that is required to produce a difference in sensation that is noticeable 50% of the time.

Psychophysical Threshold

The minimum level of stimulus intensity perceived by the sensory system.

Just Noticeable Difference

The smallest difference in stimulation required to detect a change in sensory inputs, also known as the difference threshold.