Suppose Current Real GDP Is Greater Than Planned Aggregate Expenditure

question 117

Multiple Choice

Suppose current real GDP is greater than planned aggregate expenditure.Which of the following best describes how inventories of goods and services are affected?  

• A) Inventories of goods and services will rise. 
• B) Inventories of goods and services will decline. 
• C) Firms will increase production to replenish depleted inventories. 
• D) Inventories will stay the same.

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Definitions:

Depth Cues

Visual indicators that allow an individual to perceive the depth and distance of objects in their environment.

Redundancy

The occurrence of excess or unnecessary repetition in data, information, or structures, often leading to the possibility of elimination without loss of function or meaning.

Misleading Information

Incorrect or deceptive data that leads to erroneous conclusions or judgments.

Animated Neon Signs

Signage technology that uses neon gas-filled tubes, which can be animated to create moving or flashing visual effects.