When Current Real Production of Goods and Services (Real GDP)is

question 112

Multiple Choice

When current real production of goods and services (real GDP) is greater than planned aggregate expenditure

• A)inventories of goods and services are rising
• B)firms will increase production to replenish depleted inventories
• C)businesses and households will increase planned aggregate spending because it is in their interest to promote employment
• D)the price level will automatically rise to restore equilibrium in the economy
• E)leakages must equal planned injections

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Definitions:

Anticipation

The action of expecting or predicting something to happen or be forthcoming.

Brainstorming

A creative group activity aimed at generating a large number of ideas or solutions for a specific problem or challenge.

Cross-Functional Teams

Groups composed of members from different departments working together towards a common goal.

Diversity

The inclusion of individuals representing more than one national origin, color, religion, socioeconomic stratum, sexual orientation, etc.