The Equilibrium Level of GDP Is Associated with

question 65

Multiple Choice

The equilibrium level of GDP is associated with

• A) an excess of planned investment over saving.
• B) no unintended changes in inventories.
• C) an unintended decrease in business inventories.
• D) an unintended increase in business inventories.

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Definitions:

Subsidiary

A company that is completely or partly owned and partly or wholly controlled by another company.

Compounded Annually

The process of adding interest to the principal sum of an investment, loan, or deposit once per year.

Monthly Payment

A fixed amount of money paid every month, typically as part of a loan or mortgage repayment schedule.

Compounded Quarterly

This refers to the method where interest on a financial product is calculated and added to the principal sum every three months.