A Decrease in Aggregate Expenditure Has What Result on Equilibrium

question 153

Multiple Choice

A decrease in aggregate expenditure has what result on equilibrium GDP?

• A)Equilibrium GDP rises.
• B)Equilibrium GDP is not affected by a decrease in aggregate expenditure.
• C)Equilibrium GDP falls.
• D)Equilibrium GDP may rise or fall depending on the size of the decrease in aggregate expenditure relative to the initial level of GDP.

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Definitions:

Labour Standards

The established amount of time required to perform a task, based on measurements of work performance, used for planning and payroll purposes.

Fair Day's Work

The expectation of a reasonable amount of work to be completed by an employee within a workday.

Classical Stopwatch Study

A time study method where a timekeeping device is used to measure the time it takes for a worker to perform a set of tasks or operations.

Time Study

Timing a sample of a worker’s performance and using it as a basis for setting a standard time.