If Aggregate Planned Expenditure Is Less Than Real GDP Then

question 107

Multiple Choice

If aggregate planned expenditure is less than real GDP then

• A) firmsʹ inventories will decrease and real GDP will decrease as production falls.
• B) consumers increase their planned expenditure until aggregate planned expenditure increases to equal real GDP.
• C) firms increase their planned expenditure until aggregate planned expenditure increases to equal real GDP.
• D) firmsʹ inventories will increase and real GDP will decrease as production falls.

Prepare budget performance reports and analyze variances.

Allocate support department expenses to divisions based on proportional metrics.

Calculate the increase in operating income from internal transfers and negotiate transfer prices.

Identify the most profitable divisions using various profitability metrics.

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