Firms in a Small Economy Planned That Inventories Would Grow

question 278

Multiple Choice

Firms in a small economy planned that inventories would grow over the past year by $300,000.Over that year, inventories actually grew by $400,000.This implies that

• A)aggregate expenditure that year was less than GDP that year.
• B)there was an unplanned decrease in inventories that year.
• C)there was a planned decrease in inventories that year.
• D)aggregate expenditure that year was equal to GDP that year.
• E)consumer spending grew faster than expected.

---

Definitions:

Uniform Commercial Code

The Uniform Commercial Code (UCC) is a comprehensive set of laws governing commercial transactions in the United States, aiming to standardize laws across states.

Negligent

Failing to take proper care in doing something, resulting in damage or harm to another person.

Certified Check

A check verified by a bank, confirming that the signer has enough funds in their account to cover the check amount.

Cashier's Check

A check issued by a bank, drawn on the bank's own funds and signed by a cashier, used for guaranteed payment.