Which of the Following Does NOT Occur When the Economy

question 4

Multiple Choice

Which of the following does NOT occur when the economy is operating at the equilibrium level of GDP?

• A) Total planned expenditures equal real GDP.
• B) Real GDP tends to rise over time.
• C) Planned investment equals actual investment.
• D) Inventory investment equals zero.

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Definitions:

Ratification

The act of approving or sanctioning an agreement or treaty that makes it officially valid.

Unauthorized Act

An action taken by an individual or entity without permission or authority, potentially leading to legal consequences or invalidation of the act.

Principal

In finance, this term refers to the original sum of money borrowed in a loan, or the amount of the investment itself, excluding any interest or profit.

Agent

A person or entity authorized to act on behalf of another person or entity in contractual or legal matters.