Whenever Planned Aggregate Spending Exceeds Real GDP, Unplanned Inventory Investment

question 105

Multiple Choice

Whenever planned aggregate spending exceeds real GDP, unplanned inventory investment is:

• A) negative.
• B) zero.
• C) positive.
• D) unpredictable.

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Definitions:

Planning Gap

The difference between an organization's current position and its desired future state, identified during strategic planning.

Contribution Margin

The amount by which product or service sales exceed variable costs, contributing to covering fixed costs and profit generation.

Planning Gap

The difference between future desired performance and projected actual performance, identified during strategic planning processes.

Sales Revenue Data

Information regarding the income generated from the sale of goods or services before any expenses are subtracted.