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:

Parallel Forms

A method of reliability assessment in psychometrics where two different versions of a test are used to measure the same construct, to check for consistency.

Interrater

Relates to the degree of agreement among independent observers or raters evaluating the same phenomenon.

Predictive Validity

The extent to which a score or measurement can accurately predict future performance or behavior.

Concurrent Validity

A measure of how well a particular test correlates with a previously validated measure.