When Aggregate Expenditure Is Less Than GDP, Which of the Following

question 88

Multiple Choice

When aggregate expenditure is less than GDP, which of the following is true?

• A)There was an unplanned increase in inventories.
• B)Firms spent more on capital goods than they anticipated.
• C)Households bought more new homes than they anticipated.
• D)unemployment is likely to rise.
• E)All of the above must be true when aggregate expenditure is less than GDP.

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Definitions:

Bonds

Financial instruments representing a loan made by an investor to a borrower, typically a corporation or governmental entity.

Liens

A legal claim or right against a property as security for a debt or loan.

Public Corporations

Entities that are owned by the government to serve the public interest, often operating in sectors like transportation, utilities, or healthcare.

Provincial Personal Property

Belongings owned by an individual or entity within a specific province that are not fixed to land.