If Retail Managers Are Ordering Extra Merchandise from Their Wholesale

question 153

Multiple Choice

If retail managers are ordering extra merchandise from their wholesale distributors, then it is probably true that

• A)total output is greater than total spending.
• B)price levels are decreasing.
• C)inventory levels are increasing.
• D)inventory levels are decreasing.

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Definitions:

Real GDP

stands for Real Gross Domestic Product, which measures the value of all goods and services produced by an economy over a specific period, adjusted for inflation.

Aggregate Expenditure

The total amount of spending in an economy, including consumption, investment, government purchases, and net exports.

Income

Income earned, particularly in a consistent manner, from labor or investment returns.

U.S. Exports

Goods and services produced in the United States and sold to other countries.