If Aggregate Expenditure Is Less Than GDP,inventories Will

question 62

Multiple Choice

If aggregate expenditure is less than GDP,inventories will

• A) grow and prices will fall
• B) grow and GDP will rise
• C) grow and GDP will fall
• D) shrink and GDP will rise
• E) shrink and GDP will fall

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Definitions:

Non-Value-Added Cost

Expenses that do not add to the value or functionality of a product or service from the perspective of the customer.

Value-Added Cost

The increase in the value of goods or services as a result of a particular activity or process.

Customer Perspective

An approach focusing on understanding and meeting the needs and expectations of customers to improve a company's performance.

Bottlenecks

Points of congestion in a system where the demand outweighs the capacity, causing delays and reduced efficiency.