During 2015, a Country Reports Aggregate Planned Expenditures of $5

question 66

Multiple Choice

During 2015, a country reports aggregate planned expenditures of $5 trillion and an actual real GDP of $4 trillion.During 2015,

• A) inventories are less than planned.
• B) inventories are greater than planned.
• C) inventories are unaffected.
• D) actual aggregate expenditures are greater than real GDP.
• E) actual aggregate expenditures are less than real GDP.

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Definitions:

Cost-Led Pricing

A pricing strategy that involves calculating all the costs involved in producing a product and then adding a markup to ensure profitability.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs of goods sold, highlighting the profitability of a business or product.

Fair Pricing

The degree to which both businesses and customers believe that the pricing is reasonable.

Reasonable

Based on good sense and sound judgment; fair and sensible.