When Expenditures Exceed Income, Businesses Experience

question 2

Multiple Choice

When expenditures exceed income, businesses experience:

• A) an increase in inventories.
• B) a drop in inventories.
• C) an increase in supply.
• D) a decrease in supply.

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Definitions:

Native American Potlatch

A ceremonial feast within indigenous cultures of the Pacific Northwest, marked by the giving of gifts and redistribution of wealth.

Working Class

A social group consisting of people who are employed in lower tier jobs, often involving manual labor, and are typically characterized by lower income and education levels compared to other classes.

Higher Classes

Refers to social groups or categories that are distinguished by higher levels of wealth, education, or occupational prestige.

Economic Situations

The state of the economy at a given time, influenced by factors like inflation, unemployment, and GDP growth.