Which of the Following Statements Is True

question 62

Multiple Choice

Which of the following statements is true?

• A) When TP = TE (total production = total expenditures),the economy is necessarily producing Natural Real GDP.
• B) When TP is greater than TE,inventory levels unexpectedly fall.
• C) When TE is greater than TP,inventory levels unexpectedly rise.
• D) b and c
• E) none of the above

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Definitions:

Profit Center

A division whose parent company evaluates it on the basis of the profit it earns.

Executives

Executives are high-level managers or administrators in organizations, responsible for strategizing and decision-making to drive the company towards its goals.

Attention

The focused mental engagement on a particular item of information, object, or task, and the process of selectively concentrating on one aspect while ignoring others.

Divisional Profitability

A measurement of the financial performance of individual divisions or segments within a company, indicating their contribution to overall profit.