Unplanned Changes in Inventories

question 126

Multiple Choice

Unplanned changes in inventories:

• A)cause the economy to move away from the equilibrium GDP.
• B)must be subtracted from planned investment to determine actual investment.
• C)bring actual investment and saving into equality only at the equilibrium level of GDP.
• D)bring actual investment and saving into equality at all levels of GDP.

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Definitions:

Drive Reduction

A theory in psychology suggesting that motivation arises from the need to reduce internal drives such as hunger or thirst, leading to certain behaviors.

Behavior-Reinforcer Belief

The belief or expectancy that a particular behavior will lead to a specific reinforcing consequence.

Expectations

Beliefs or anticipations about the future, which can influence people's behavior and decision-making processes.

Means-End-Readiness

A cognitive strategy where individuals identify and utilize the necessary means to achieve a desired end or goal.