If Planned Aggregate Expenditure Is Less Than Total Production

question 28

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.

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Definitions:

Outer Canthus

The external corner of the eye where the upper and lower eyelids meet.

Lower Conjunctival Sac

The space between the lower eyelid and the surface of the eye, often where eye drops are applied.

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Comatose Patient

An individual in a state of deep unconsciousness for a prolonged period, unable to be awakened, typically due to illness or injury.