-Real GDP Equals $20 Billion and Aggregate Planned Expenditure Is

question 90

Multiple Choice

-Real GDP equals $20 billion and aggregate planned expenditure is $30 billion. There is an unplanned _ in inventories of and real GDP will .

• A) decrease; $10 billion; decrease
• B) decrease; $10 billion; increase
• C) increase; $10 billion; increase
• D) increase; $50 billion; decrease

---

Definitions:

Unit Variable Cost

The cost that varies with each unit of product produced, encompassing materials and labor but not fixed costs.

Sales Required

The minimum sales needed to achieve a specific financial goal or to cover costs.

Variable Cost

Costs that vary directly with the level of production or output.

Break-even Point

The level of production or sales at which total revenues equals total expenses, with no net loss or gain.