If Real GDP Equals $700 Billion and Planned Aggregate Expenditures

question 24

Multiple Choice

If real GDP equals $700 billion and planned aggregate expenditures equal $400 billion:

• A) consumption plus planned investment equals $300 billion.
• B) actual investment equals -$300 billion.
• C) actual investment plus savings equals $300 billion.
• D) unplanned inventory accumulation equals $300 billion.

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Definitions:

Fly

A term that can refer to the act of moving through air using wings or through travelling by airplane, often unrelated to direct business terminology.

Ferrous Metal

Metals that contain iron. They are known for their strength and are widely used in construction, automotive, and other heavy industries.

Warp Ends

In textile manufacturing, this term refers to the threads that run lengthwise in a piece of woven fabric, often tied off or finished at the ends.

Investment Recovery

The process of recovering value from surplus or obsolete assets through redeployment, sale, recycling, or disposal.