If Aggregate Expenditure Is Greater Than GDP,how Will the Economy

question 96

Multiple Choice

If aggregate expenditure is greater than GDP,how will the economy reach macroeconomic equilibrium?

• A)Inventories will decline,and GDP and employment will decline.
• B)Inventories will rise,and GDP and employment will decline.
• C)Inventories will decline,and GDP and employment will rise.
• D)Inventories will rise,and GDP and employment will rise.

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Definitions:

Scapegoat Theory

A concept suggesting that individuals or groups blame their own failures or shortcomings on another person or group.

Other-race Effect

The tendency to more easily recognize faces of the race that one is most familiar with, which can lead to difficulties in cross-racial identification.

Gender Preference

An individual's inclination or favoritism towards a specific gender, which can influence interpersonal attraction, friendships, and other social dynamics.

Criminal

An individual who has committed a crime or unlawful act as defined by the legal system.