In the Short Run,when Output Is Less Than Planned Aggregate

question 43

Multiple Choice

In the short run,when output is less than planned aggregate expenditure,

• A) potential output is greater than GDP.
• B) potential output is less than GDP.
• C) potential output equals GDP.
• D) planned private-sector investment is greater than actual private-sector investment.
• E) planned private-sector investment is less than actual private-sector investment.

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Definitions:

Scientific Notation

A way of expressing numbers that are too large or too small to be conveniently written in decimal form, using powers of ten.

Quadratic Polynomial

A polynomial of degree two, typically written in the form ax^2 + bx + c where a, b, and c are constants.

Cubic Polynomial

A polynomial of degree three, characterized by an equation of the form ax^3 + bx^2 + cx + d, where a, b, c, and d are constants and a ≠ 0.

Quintic Polynomial

A polynomial of degree five, represented as \(ax^5 + bx^4 + cx^3 + dx^2 + ex + f\) where \(a\), \(b\), \(c\), \(d\), \(e\), and \(f\) are constants and \(a \neq 0\).