In the Short Run with Predetermined Prices, When Output Is

question 45

Multiple Choice

In the short run with predetermined prices, when output is greater than planned aggregate expenditure:

• A) potential output is greater than short-run equilibrium output.
• B) potential output is less than short-run equilibrium output.
• C) planned investment is less than actual investment.
• D) planned investment is greater than actual investment.

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Definitions:

Construction Loans

Short-term loans used to finance the building of a property, with funds released incrementally as construction progresses.

Mortgage Trust

A type of investment trust that pools mortgage loans, offering investors a share in the income generated from these mortgages.

REIT

Real estate investment trust, which is similar to a closed-end mutual fund. REITs invest in real estate or loans secured by real estate and issue shares in such investments.

Front-end Load

A fee or commission charged to an investor at the time of initial purchase of an investment, such as a mutual fund or insurance product, usually a percentage of the investment amount.