When Aggregate Expenditure Is Greater Than Aggregate Output, There Will

question 337

True/False

When aggregate expenditure is greater than aggregate output, there will be an unplanned build up of inventories.

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Definitions:

Unearned Revenue

Money received by an entity for goods or services to be provided in the future, recognized as a liability until the service is performed.

Net Income

The amount of money a company makes once it has paid off all expenses and taxes from its revenue.

Ending Inventory

At the close of an accounting cycle, the valuation of products set for sale, computed by taking the initial inventory, adding the acquisitions, and deducting the cost of goods sold.