If Aggregate Demand Is Less Than the Level of Aggregate

question 120

Multiple Choice

If aggregate demand is less than the level of aggregate output,then ________ inventory investment will be ________.

• A)planned;positive
• B)actual;positive
• C)actual;negative
• D)planned;negative

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Definitions:

Retained Earnings

Retained earnings represent the portion of a company's net income that is kept within the company after dividends are paid to shareholders, used for reinvestment or debt payment.

December

The Gregorian calendar's final and twelfth month marks the end of the year.

Raw Materials

The basic materials that are processed or used to manufacture goods.

Cash Disbursements

Outflows of cash for expenses, acquisitions, and other payments made by a business during a specific period.