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If Real GDP Exceeds Aggregate Planned Expenditure, Then the Change

question 98

Multiple Choice

If real GDP exceeds aggregate planned expenditure, then the change in unplanned inventories is ________ and firms ________ production.


Definitions:

New Facilities

Refers to the construction or opening of new physical buildings or infrastructure for business or operational use.

Break-Even

is a financial term indicating the point at which costs or expenses and revenue are equal, resulting in no net loss or gain.

Total Revenue

The entire amount of income generated by the sale of goods or services before any deductions are made.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance, essential for budgeting and financial planning.

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