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

question 30

Multiple Choice

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

• A)then saving must be larger than consumption
• B)the price level will increase
• C)inventories will increase
• D)inventories will decrease
• E)consumption will decrease

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Definitions:

Love And Belongingness

A human motivational need, according to Maslow's hierarchy of needs, involving interpersonal relationships, affection, group membership, and love.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone, the highest level of Maslow's hierarchy of needs.

Psychological Drives

Internal motivations that propel individuals to act in certain ways, often related to basic physiological needs or desires.

Physiological Drives

Basic, instinctual bodily needs that motivate behavior, such as hunger and thirst.