Unplanned Investment Occurs When

question 123

Multiple Choice

Unplanned investment occurs when
I. aggregate expenditures exceed real GDP produced.
II. aggregate expenditures fall short of real GDP produced.
III. when real GDP produced is less than potential real GDP.
IV. when real GDP produced is greater than potential real GDP.

• A) I and II only
• B) I and IV only
• C) II and III only
• D) I, II, III, and IV

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.