Suppose That There Is No Government and No International Trade

question 112

Multiple Choice

Suppose that there is no government and no international trade. When C + I is less than the level of real GDP

• A) unplanned inventories decrease, and real GDP expands.
• B) unplanned inventories increase, and real GDP contracts.
• C) unplanned inventories equal zero, and there is no change in the level of real GDP.
• D) real planned investment spending equals real planned saving.

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Definitions:

Proactive Behavior

Taking initiative in anticipating and preventing potential problems or seizing opportunities before they occur.

Resolve Conflict

The process of finding a peaceful solution to a disagreement among parties.

Minor Conflicts

Small disagreements or disputes that arise in personal or professional settings, typically easy to resolve.

Constructive Feedback

Critique that focuses on the process and outcomes of communication, not on the people involved.