Suppose the Level of Planned Aggregate Expenditure in an Economy

question 60

Multiple Choice

Suppose the level of planned aggregate expenditure in an economy is $1 000 and real GDP is $800.According to the simple model developed in this chapter,in which the aggregate price level is assumed to be constant,we can expect:

• A) inventories to stay the same,since this is part of planned investment.
• B) inventories to decrease.
• C) inventories to increase.
• D) real GDP to fall further.

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Definitions:

One-way ANOVA

A statistical technique used to compare mean values of three or more independent groups to find if at least one group mean is significantly different from the others.

Groups

Collections of individuals or items classified together based on common characteristics or attributes.

One-way ANOVA

A statistical method used to compare the means of three or more independent groups to ascertain if there are any statistically significant differences among them.

F-ratio

A statistical measure used in the analysis of variance (ANOVA), calculated by dividing the variance among group means by the variance within the groups.