1. When aggregate planned expenditure exceeds real GDP, there is a. A planned decrease in inventories. b. A planned increase in inventories. C. An unplanned decrease in inventories. d. An unplanned increase in inventories. 2. Investment is defined as a. The purchase of a stock or bond. b. Financial capital. c. What consumers do with their savings. d. The purchase of new capital goods by firms. 3. The natural unemployment rate is not zero because natural unemployment rate includes a. Discouraged workers. b. Cyclical unemployment. C. Frictional and cyclical unemployment. d. Frictional and structural unemployment. e. Cyclical and structural unemployment. 4. The crowding out effect refers to how a government budget deficit a. Shifts the saving supply curve leftward. b. Shifts the investment demand curve leftward. C. Increases the equilibrium quantity of Investment. d. Decreases the equilibrium quantity of investment. Which of the following are included in the income approach to measuring GDP? a. Rent, wages, interest. b. Interest, net exports of goods and services, consumption expenditure. C. Wages, Interest, government expenditure on goods and services. d. Rent, wages, net export of goods and services. 6. When the nominal interest rate equals zero, the real interest rate equals a. The negative of the inflation rate. b. The inflation rate minus one percent. C. The negative of the CPI. d. The CPI minus one percent