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:

McClelland's View

A theory in psychology focusing on three needs: achievement, affiliation, and power, which motivate people's behavior.

Achievements

Accomplishments or successes that are achieved through effort, skill, or courage.

Idiographic Goals

Unique, personal objectives that are specific to an individual's desires and life circumstances, guiding their behavior in a deeply personal way.

Nomothetic Goals

Objectives or aims that apply universally, seeking to establish general laws and principles about human behavior.