Multiple Choice
When aggregate expenditure is more than GDP, which of the following is true?
A) There was an unplanned decrease in inventories.
B) Firms spent less on capital goods than they anticipated.
C) Households bought fewer new homes than they anticipated.
D) All of the above must be true when aggregate expenditure is more than GDP.
Correct Answer:

Verified
Correct Answer:
Verified
Q15: If economists forecast an increase in aggregate
Q17: Consumption spending is $6 million, planned investment
Q18: Household wealth is defined as the value
Q20: Which of the following will raise consumer
Q21: Refer to Figure 9.1 for the following
Q22: The slope of the consumption function is
Q24: Refer to Figure 9.3 for the following
Q67: The ratio of the increase in _
Q211: A rising price level decreases consumption by
Q267: Household spending on goods and services is