When Actual Private-Sector Investment Is Less Than Planned Private-Sector Investment

question 82

Multiple Choice

When actual private-sector investment is less than planned private-sector investment,

• A) firms are selling less output than expected.
• B) firms are selling more output than expected.
• C) the quantity of output sold is the amount the firm expected to sell.
• D) the economy is at short-run equilibrium.
• E) autonomous planned aggregate expenditure is less than induced planned aggregate expenditurE.

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Definitions:

Flexible Budget

A budgeting approach that adjusts for variations in activity levels, providing a more useful comparison of actual to budgeted performance.

Variable Cost Estimates

Predicted costs that vary in total in direct proportion to changes in an activity level or output.

Travel Expenses

are costs associated with business travel, including transportation, lodging, and meals, often reimbursable by an employer.

Customers Served

The total number of customers that have been provided services or goods by a business during a specific time period.