In a Small Economy in 2011,aggregate Expenditure Was $850 Million

question 145

Multiple Choice

In a small economy in 2011,aggregate expenditure was $850 million while GDP that year was $800 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:

Sensory Neurons

Nerve cells that are responsible for converting external stimuli from the organism's environment into internal electrical impulses.

Motor Neurons

Nerve cells that initiate and conduct signals to muscles and glands, enabling movement and action.

Stem Cells

Undifferentiated biological cells capable of dividing to produce more stem cells or differentiate into various types of cells with specialized functions.

Nerve Cells

Specialized cells that transmit electrical impulses throughout the nervous system.