If Planned Aggregate Expenditure Is Less Than Total Production

question 147

Multiple Choice

If planned aggregate expenditure is less than total production,

• A)actual inventories will equal planned inventories.
• B)firms will experience an unplanned increase in inventories.
• C)GDP will increase.
• D)the economy is in equilibrium.
• E)governments will run budget surpluses.

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Definitions:

Half-Life

The time required for half the atoms of a radioactive substance to decay or for a drug or other substance to lose half its pharmacologic, physiologic, or radiologic activity.

Potassium-40

A radioactive isotope of potassium used in dating geological materials, as it decays into argon-40 over a known period of time.

Carbon-14

A radioactive isotope of carbon used in dating organic materials and archaeological objects through radiocarbon dating methods.

Carbon-12

A stable isotope of carbon with six protons and six neutrons, used as a standard in atomic mass units.