The Table Given Below States the Value of the GDP

question 1

Multiple Choice

The table given below states the value of the GDP and the different components of aggregate expenditure for two years.
Table 10.1
$\begin{array}{|c|c|c|c|c|c|c|}\hline & \text { GDP } & \boldsymbol{C} & \boldsymbol{I} & \mathbf{G} & \text { Export } & \text { Import } \\\hline \text { Year 1 } & - & \$ 750 & \$ 110 & \$ 60 & \$ 70 & \$ 50 \\\hline \text { Year 2 } & \$ 1,150 & \$ 930 & \$ 90 & \$ 75 & \$ 125 & - \\\hline\end{array}$
-Refer to Table 10.1. If real GDP equals $1,000 in year 1, then:

• A) unplanned inventory investment is zero.
• B) unplanned inventories increase by $50.
• C) inventories decrease by $100.
• D) inventories increase by $60.
• E) real GDP is less than aggregate expenditure.

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Definitions:

Notification

The act of formally or officially informing someone about a fact, condition, or event.

Prior Perfected

A legal status indicating that a security interest or lien has been formally established and has priority over others in the same property.

Security Interest

A lawful assertion or encumbrance on property used as security, often aimed at guaranteeing loan repayment.

Trustee in Bankruptcy

An individual or entity appointed to oversee and administer the estate of a bankrupt entity to ensure fair distribution of assets to creditors.