If Aggregate Planned Expenditure Exceeds Real GDP

question 466

Multiple Choice

If aggregate planned expenditure exceeds real GDP

• A) firms are not maximizing their profits.
• B) planned investment is greater than planned saving.
• C) actual inventories decrease below their target.
• D) planned consumption expenditure is less than actual consumption expenditure.

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Definitions:

Corporate Promoter

An individual or entity involved in establishing a company or raising capital for it before its incorporation.

Common Shares

Represents ownership equity in a corporation, providing voting rights and dividends to shareholders.

Board of Directors

A group of individuals elected to represent shareholders and govern the activities and policies of a corporation.

Corporate Promoter

An individual or entity that undertakes the creation and organization of a corporation, including the arrangement of its initial affairs.