Author Question: Trade can increase the consumption possibilities of nations. a. True b. False Indicate whether ... (Read 92 times)

renzo156 · **on:** Jun 30, 2018

Trade can increase the consumption possibilities of nations.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Which of the following most completely describes the workings of the aggregate expenditures model?
a. If aggregate expenditures are less than aggregate output, then there is unplanned inventory accumulation, and real GDP will decrease.
b. If aggregate expenditures are greater than aggregate output, then there is unplanned inventory depletion, and real GDP will increase.
c. Aggregate output generates an equal amount of aggregate spending.
d. Both a. and b. above are correct.