If Aggregate Production in the Economy Exceeds Aggregate Purchases

question 168

Multiple Choice

If aggregate production in the economy exceeds aggregate purchases

• A)firms are producing more during the year than they are selling.
• B)unintended inventory investment is negative.
• C)the economy is operating at a real GDP greater than equilibrium GDP.
• D)saving must be negative.
• E)the economy is in equilibrium.

---

Definitions:

Pectoral Girdle

The set of bones that anchors the upper limbs to the trunk, consisting of the scapulae and clavicles.

Clavicle

A lengthy bone acting as a brace between the shoulder blade and sternum, commonly referred to as the collarbone.

Scapula

A flat, triangular bone located on the posterior side of the shoulder, serving as an attachment point for muscles and supporting the arm.

Sternum

The sternum, or breastbone, is a long flat bone located in the center of the chest, serving as a major connection point for ribs.