Multiple Choice
If aggregate planned expenditure is less than real GDP
A) real GDP will increase.
B) real GDP remains unchanged.
C) real GDP will either decrease or increase, depending on the MPC.
D) inventories will increase above their target level and real GDP will decrease.
Correct Answer:
Verified
Correct Answer:
Verified
Q415: If wealth increases, the consumption function shifts
Q416: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above
Q417: The government increases its expenditures. The steeper
Q418: The smaller the slope of the AE
Q419: Disposable income is equal to<br>A) consumption expenditure
Q421: The multiplier is larger if the<br>A) marginal
Q422: The government estimates that the multiplier is
Q423: If investment decreases, the AE curve shifts<br>A)
Q424: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above
Q425: In the economy of St. Maynard Island,