When Aggregate Planned Expenditure Is Less Than Real GDP, Unplanned

question 256

Multiple Choice

When aggregate planned expenditure is less than real GDP, unplanned

• A) consumption expenditure occurs.
• B) investment occurs.
• C) government expenditures are made.
• D) exports are made.

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Definitions:

Return On Equity

A financial ratio that measures the profitability of a corporation in relation to stockholders' equity.

Fixed Asset Capacity

The maximum output or production level that can be achieved using the existing fixed assets under normal circumstances.

Growth Rate

The measure of an entity's increase in size, value, or quantity over a specific period, often expressed as a percentage.

Excess Capacity Scenario

A situation where a company can produce more goods or services than currently demanded because of available resources exceeding production requirements.