A Country Reports That Unplanned Inventories Increased During 2014

question 8

Multiple Choice

A country reports that unplanned inventories increased during 2014. The increase in unplanned inventories leads to

• A) consumers increasing their consumption expenditure, which increases GDP.
• B) firms decreasing production, which decreases GDP.
• C) firms increasing production, which increases GDP.
• D) actual aggregate expenditure being different than real GDP.
• E) the government decreasing production, which decreases GDP.

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Definitions:

Speed

The rate at which an object moves, calculated as distance traveled per unit of time.

\(f ( x )\)

A symbolic representation of a function in terms of \(x\), where \(f\) denotes the function and \(x\) represents the variable.

Graph

A diagram representing mathematical relationships between variables, typically plotted with an x-axis and a y-axis.

\(f ( x )\)

Denotes a function of x, illustrating the relationship between x and its induced value.