If Aggregate Planned Expenditures Equal Real GDP,then

question 147

Multiple Choice

If aggregate planned expenditures equal real GDP,then

• A)inventories decrease below their planned levels and businesses increase their production.
• B)unplanned inventory changes equal zero.
• C)inventories decrease below their planned levels and businesses decrease their production.
• D)inventories increase above their planned levels and businesses decrease their production.
• E)there is no equilibrium level of real GDP.

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Definitions:

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, revealing profit or loss.

Two-Column Journal

A form of journal in which there are only two amount columns, one for debits and one for credits.

Unadjusted Trial Balance

A listing of all the accounts in the general ledger with their balances before any adjustments are made.

Net Income

The net income of a business following the deduction of all costs and tax obligations from its total revenue.