If Economists Forecast an Increase in Aggregate Expenditure,which of the Following

question 198

Multiple Choice

If economists forecast an increase in aggregate expenditure,which of the following is likely to occur?

• A)GDP will rise.
• B)GDP will fall.
• C)Wages will fall.
• D)Inventories will rise.

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Definitions:

Ordinary Interest

Interest calculated on the basis of a 360-day year, often used in banking for loans and savings.

360-Day Year

A financial approximation that simplifies the calculation of interest by assuming each month has 30 days, resulting in a 360-day year.

Total Amount

The complete sum of money or quantitative count, including all relevant parts or items added together.

Simple Interest

Interest earned or paid on the initial principal amount of an investment or loan.