Consumption Spending Is $5 Million, Planned Investment Spending Is $8

question 122

Multiple Choice

Consumption spending is $5 million, planned investment spending is $8 million, actual investment spending is $8 million, government purchases are $10 million, and net export spending is $2 million. Based on this information, which of the following is true?

• A)There was an unplanned change in inventories.
• B)Aggregate expenditure is equal to GDP.
• C)Aggregate expenditure is greater than GDP.
• D)Aggregate expenditure is less than GDP.
• E)Unemployment will rise.

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Definitions:

Per Se

By itself; inherently, referring to something that is taken as a given and needs no additional proof.

Res Ipsa Loquitur

A doctrine that allows the judge or jury to infer that, more likely than not, the defendant’s negligence was the cause of the plaintiff’s harm, even though there is no direct evidence of the defendant’s lack of due care.

Federal Laws

Statutes and regulations enacted by the United States Congress and signed into law by the President.

State Laws

Regionally-specific legal frameworks enacted by individual states within a country, governing aspects not covered by federal law.