If Planned Aggregate Expenditure Is Greater Than Total Production

question 263

Multiple Choice

If planned aggregate expenditure is greater 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 are likely to experience growing budget deficits.

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Definitions:

Management

The process by which corporate executives, managers, and other leaders direct, control, and organize work tasks and company resources to achieve specific goals.

Regulatory Environment

Comprises laws, regulations, and governmental guidelines that govern the operation of businesses and industries.

Political Environment

Refers to the impact of government actions, stability, policies, and regulations on an organization's operations.