Multiple Choice
In the aggregate expenditures model, if aggregate expenditures (AE) are greater than GDP, then:
A) inventory is accumulated.
B) inventory is unchanged.
C) employment decreases.
D) employment increases.
Correct Answer:

Verified
Correct Answer:
Verified
Q62: If the MPC = 1, the spending
Q63: An economy that is operating below its
Q64: If the economy spends 80 percent of
Q65: Assume General Motors has decided to build
Q66: When an economy is operating well below
Q68: In the Keynesian model, the larger the
Q69: If a nation imports more than it
Q70: The spending multiplier indicates that:<br>A) changes in
Q71: Exhibit 9-3 Keynesian aggregate expenditures model<br><br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX8793/.jpg"
Q72: In the Keynesian aggregate expenditures model, "aggregate