In the Short Run,when Output Is Greater Than Planned Aggregate

question 138

Multiple Choice

In the short run,when output is greater than planned aggregate expenditure,

• A) potential output is greater than GDP.
• B) potential output is less than GDP.
• C) potential output equals GDP.
• D) planned private-sector investment is greater than actual private-sector investment.
• E) planned private-sector investment is less than actual private-sector investment.

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Definitions:

Parent-Company Method

An accounting approach where the parent company reports its investment in subsidiaries at cost, often used in separate financial statements.

Ownership Risk

The uncertainties faced by an entity's owners due to changes in the business environment, regulatory landscapes, or operational performance affecting the value of their investment.

Share Dilution

the decrease in existing shareholders' ownership percentage of a company as a result of the company issuing new shares.

Government Support

Financial or policy assistance provided by governmental bodies to businesses, industries, or individuals.