Multiple Choice
Firms in a small economy planned that inventories would grow over the past year by $500,000.Over that year, inventories did grow by exactly $500,000.This implies that
A) aggregate expenditure that year was equal to GDP that year.
B) there was an unplanned increase in inventories that year.
C) there was an unplanned decrease in inventories that year.
D) aggregate expenditure that year was greater than GDP that year.
E) government spending grew unpredictably.
Correct Answer:

Verified
Correct Answer:
Verified
Q74: Aggregate expenditure includes consumption spending,planned investment spending,government
Q180: Which of the following correctly describes how
Q181: Suppose Canada experiences a long period of
Q182: If firms are more optimistic that future
Q183: Table 8.1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3061/.jpg" alt="Table 8.1
Q184: Tariffs and trade wars cause net exports
Q186: If the marginal propensity to save is
Q188: If inventories decline by more than analysts
Q189: If the economy is currently in equilibrium
Q190: On the 45-degree line diagram, the 45-degree