Which of the Following Will Not Occur When the Economy

question 62

Multiple Choice

Which of the following will not occur when the economy is at its equilibrium GDP level?

• A)Aggregate expenditures = GDP.
• B)Inventories will be zero.
• C)Saving equals planned investment.
• D)There are no unplanned changes in inventories.

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Definitions:

Independent Directors

Members of a company's board of directors who do not have a material or pecuniary relationship with the company or related persons, ensuring unbiased governance and decision-making.

CFO

Chief Financial Officer, a senior executive responsible for managing the financial actions of a company.

Auditing Firms

Companies specializing in examining and evaluating the accuracy of financial records and statements of a corporation or entity.

Financial Assets

Assets that derive value from a contractual promise or ownership right, including stocks, bonds, derivatives, and bank balances.