Unplanned Investment Occurs When

question 123

Multiple Choice

Unplanned investment occurs when
I. aggregate expenditures exceed real GDP produced.
II. aggregate expenditures fall short of real GDP produced.
III. when real GDP produced is less than potential real GDP.
IV. when real GDP produced is greater than potential real GDP.

• A) I and II only
• B) I and IV only
• C) II and III only
• D) I, II, III, and IV

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Definitions:

Unsecured Credit

A type of loan or credit that is not backed by collateral, meaning the lender relies on the borrower's creditworthiness and promise to repay.

Lowest Risk

Involves choosing an option that minimizes potential hazards or losses.

Submaterialman

An individual or business that supplies materials to a subcontractor, assisting in fulfilling the subcontractor's obligations.

Statute

A written law passed by a legislative body, governing society and establishing rules that constituents must follow.