Firms in a Small Economy Planned That Inventories Would Grow

question 185

Multiple Choice

Firms in a small economy planned that inventories would grow over the past year by $500,000.Over that year, inventories did grow by exactly $500,000.This implies that

• A)aggregate expenditure that year was equal to GDP that year.
• B)there was an unplanned increase in inventories that year.
• C)there was an unplanned decrease in inventories that year.
• D)aggregate expenditure that year was greater than GDP that year.
• E)government spending grew unpredictably.

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