In a Small Economy in 2018,aggregate Expenditure Was $800 Million

question 252

Multiple Choice

In a small economy in 2018,aggregate expenditure was $800 million while GDP that year was $850 million.Which of the following can explain the difference between aggregate expenditure and GDP that year?

• A)Aggregate expenditure is always less than GDP in developed countries.
• B)Firm investment in inventories was less than anticipated in 2018.
• C)Firm investment in inventories was greater than anticipated in 2018.
• D)Aggregate expenditure is always less than GDP in developing countries.

Recognize the function and purpose of major economic and trade organizations.

Identify factors leading to economic recessions and expansions.

Distinguish between direct and indirect competition.

Understand the role of environmental scanning in marketing strategy.

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Definitions:

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