If Aggregate Planned Expenditure Exceeds Real GDP, Then Inventories

question 115

Multiple Choice

If aggregate planned expenditure exceeds real GDP, then inventories

• A)increase and real GDP increases.
• B)increase and real GDP falls.
• C)decrease and real GDP increases.
• D)decrease and real GDP decreases.
• E)remain constant and real GDP remains constant.

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Definitions:

Operating Activity

Activities that relate directly to the business's primary operations, such as sales, expenses, and cash flow from providing goods or services.

Public Accountant

Accountant who provides accounting services to individuals or business firms for a fee.

Accounting Services

Professional services that include bookkeeping, auditing, tax preparation, and financial management advice.

Financing Activities

Transactions that involve raising capital or funds for a company's operations, including debt, equity, and other financial instruments.