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:

Spain

A country in southwestern Europe on the Iberian Peninsula, known for its rich history, cultural diversity, and significant contributions to art, literature, and science.

Headright System

A land grant policy that allocated parcels of land to settlers and investors who financed the passage of indentured servants to the Americas, prevalent in the 17th century.