Multiple Choice
In a small economy in 2011,aggregate expenditure was $800 million while GDP that year was $850 million.Which of the following can explain the difference between aggregate expenditure and GDP that year?
A) Aggregate expenditure is always less than GDP in developed countries.
B) Firm investment in inventories was less than anticipated in 2011.
C) Firm investment in inventories was greater than anticipated in 2011.
D) Aggregate expenditure is always less than GDP in developing countries.
Correct Answer:
Verified
Correct Answer:
Verified
Q12: Explain,in detail,how the adjustment to macroeconomic equilibrium
Q14: If consumption is defined as C =
Q18: Figure 23-2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3018/.jpg" alt="Figure 23-2
Q103: Which of the following will raise consumer
Q149: Increases in housing prices<br>A) decrease consumption in
Q156: _ is defined as the value of
Q157: Housing wealth is equal to<br>A) the market
Q200: _ describes the relationship between consumption spending
Q224: Ceteris paribus,how does a recession in the
Q303: If planned aggregate expenditure is below potential