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

question 105

Multiple Choice

In the income-expenditure framework,if planned aggregate expenditures are greater than real GDP,

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

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Definitions:

Standard Normal Random Variable

A random variable with a mean of 0 and a standard deviation of 1, following a normal distribution.

Area

The measure of the extent of a two-dimensional figure or shape in a plane.

z

In statistics, a z-score indicates how many standard deviations an element is from the mean.

Normally Distributed Random Variable

A type of random variable whose values are symmetrically distributed around the mean, forming a bell-shaped curve when graphed.