In the Income-Expenditure Framework,if Planned Aggregate Expenditures Are Less Than

question 22

Multiple Choice

In the income-expenditure framework,if planned aggregate expenditures are less than real gross domestic product (GDP) ,_____.

• A)saving will increase
• B)the price level will increase
• C)inventories will increase
• D)inventories will decrease
• E)consumption will decrease

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Definitions:

Food Rewards

Incentives, often edible, used to motivate or reinforce desired behavior in both humans and animals.

Demographic Statistics

Data that relates to the structure of populations, such as age, race, gender, income, and education.

Law School

An educational institution or part of an institution that offers professional training in legal studies, preparing students to become lawyers.

Delay of Gratification

The ability to resist the temptation for an immediate reward and wait for a later, often greater, reward.