If the Output Level Is Such That the Aggregate Expenditure

question 44

Multiple Choice

If the output level is such that the aggregate expenditure line lies below the 45-degree line,which of the following is true?

• A) Aggregate expenditure is greater than output,so inventories will increase and output will be raised.
• B) Aggregate expenditure is greater than output,so inventories will decrease and output will be increased.
• C) Aggregate expenditure is less than output,so inventories will decrease and output will be raised.
• D) Aggregate expenditure is less than output,so inventories will increase and output will be lowered.
• E) Aggregate expenditure is greater than output,so inventories will increase and output will be lowered.

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Definitions:

Peak Experiences

Transcendent moments of pure joy and elation, which often feel as though they provide deep personal significance.

Self-Actualization Level

The realization or fulfillment of one's talents and potentialities, considered as the drive or need present in everyone.

Empathy

The capacity to comprehend and empathize with someone else's emotions as if you were in their position.

Individualism

A framework within society that esteems individual decision-making over control by state entities or collectives.