When the AE line lies above the 45° line,
A) real GDP exceeds aggregate planned expenditure.
B) there are unplanned increases in inventories.
C) aggregate planned expenditure is less than real GDP.
D) the price level is rising.
E) there are unplanned decreases in inventories.
E
Economics
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A pay-as-you-go system of financing Social Security is not as good as a fully funded system.
A. True B. False C. Uncertain
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Economists generally oppose direct regulation because:
A. it is generally unfair. B. it is unlikely to achieve the desired end as efficiently as possible. C. it assumes that people behave rationally. D. it does not assume that people behave rationally.
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