In a Small Economy in 2018,aggregate Expenditure Was $800 Million

question 252

Multiple Choice

In a small economy in 2018,aggregate expenditure was $800 million while GDP that year was $850 million.Which of the following can explain the difference between aggregate expenditure and GDP that year?

• A)Aggregate expenditure is always less than GDP in developed countries.
• B)Firm investment in inventories was less than anticipated in 2018.
• C)Firm investment in inventories was greater than anticipated in 2018.
• D)Aggregate expenditure is always less than GDP in developing countries.

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