In a Small Economy in 2011,aggregate Expenditure Was $800 Million

question 153

Multiple Choice

In a small economy in 2011,aggregate expenditure was $800 million while GDP that year was $850 million.Which of the following can explain the difference between aggregate expenditure and GDP that year?

• A) Aggregate expenditure is always less than GDP in developed countries.
• B) Firm investment in inventories was less than anticipated in 2011.
• C) Firm investment in inventories was greater than anticipated in 2011.
• D) Aggregate expenditure is always less than GDP in developing countries.

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Definitions:

Enhancements

Improvements or upgrades made to products, services, or systems to increase functionality or performance.

Alliances

Cooperative agreements that allow firms to remain independent, but cooperatively pursue strategies consistent with their individual missions.

Bill of Material

A comprehensive list of raw materials, components, and instructions required to construct, manufacture, or repair a product or service.

Assembly Drawing

A detailed diagram that shows the parts of an object and how they fit together to form the final product.