If Aggregate Expenditure Is Greater Than GDP, How Will the Economy

question 282

Multiple Choice

If aggregate expenditure is greater than GDP, how will the economy reach macroeconomic equilibrium?

• A)Inventories will decline and GDP and employment will decline.
• B)Inventories will rise and GDP and employment will decline.
• C)Inventories will decline and GDP and employment will rise.
• D)Inventories will rise and GDP and employment will rise.
• E)Inventories will rise, GDP will fall, and employment will rise.

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Definitions:

Patent Trolls

Entities that purchase broad patents and use them to sue or threaten companies for patent infringement, often without producing any related products or services themselves.

Royalties

Payments made to the owners of intellectual property, such as patents or copyrights, for the use of their property.

Patent Ownership

The legal right granted to an inventor or assignee to exclusively produce, use, and sell an invention for a certain period of time.

R&D Activities

Research and development activities aimed at innovating and developing new products, services, or technologies.