If Real GDP Is $1,000 Billion and the Aggregate Expenditure

question 22

Multiple Choice

If real GDP is $1,000 billion and the aggregate expenditure is $850 billion, then the change in inventories will be:

• A) -$150 million.
• B) $1,850 million.
• C) $150 million.
• D) -$1,850 million.

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Definitions:

Indirect Labor

Costs associated with employees who do not directly produce goods but whose services are necessary for the manufacturing process.

Activity Pools

These refer to groups of related tasks or activities in a business that consume resources and are used in activity-based costing for assigning costs to products or services.

Activity Rate

A metric used to allocate costs based on the level of activity, commonly used in activity-based costing.

Scheduling Activity

The process of planning and organizing tasks or events over a given timeline to ensure efficient use of resources.