When Would We Expect to See Undesired or Unplanned Inventory

question 137

Multiple Choice

When would we expect to see undesired or unplanned inventory decumulation?

• A)when consumption exceeds investment
• B)when investment exceeds consumption
• C)when autonomous expenditure exceeds induced expenditure
• D)when desired aggregate expenditure exceeds actual aggregate expenditure
• E)when actual aggregate expenditure exceeds desired aggregate expenditure

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Definitions:

Objective Concept

An idea or notion that is based on factual and observable phenomena, unbiased by personal feelings or interpretations.

Personal Preferences

The specific likes, dislikes, desires, and interests of an individual, often influencing their purchasing decisions.

Scarcity

The core issue in economics is the presence of endless human desires within a finite resource environment.

Economy

A system of production, distribution, and consumption of goods and services within a certain geographical area.