In a Small Economy in 2018,aggregate Expenditure Was $850 Million

question 117

Multiple Choice

In a small economy in 2018,aggregate expenditure was $850 million while GDP that year was $800 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.

---

Definitions:

Stereotypes

are oversimplified generalized beliefs about a group of people, which can lead to misjudgments and discriminatory behaviors.

Direct Perception Checking

A communication technique where one person seeks verification by asking direct questions or expressing observations to clarify potential misunderstandings.

Indirect Perception Checking

A method of verifying the accuracy of one's interpretations of others' behaviors or statements without direct questioning.

Relationships

Connections or associations between two or more people, based on feelings, interactions, or commonalities.