If Planned Aggregate Expenditure Is Greater Than Total Production

question 253

Multiple Choice

If planned aggregate expenditure is greater than total production

• A)actual inventories will equal planned inventories.
• B)firms will experience an unplanned increase in inventories.
• C)GDP will increase.
• D)the economy is in equilibrium.

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Definitions:

Interest

The charge for borrowing money, typically expressed as an annual percentage of the principal.

Credit

The trust which allows one party to provide resources to another party wherein the second party does not reimburse the first party immediately but promises to do so in the future.

Bonds

Fixed income investments representing a loan made by an investor to a borrower, typically corporate or governmental.

Loan Money

The act of giving money, property, or other material goods to another party in exchange for future repayment of the principal amount, along with interest or other finance charges.