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

question 43

Multiple Choice

In the short run,when output is less 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:

Depreciation Expense

The methodical distribution of a physical asset's expense over its lifespan, indicative of the asset's usage or deterioration.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life as an expense, reflecting wear and tear or obsolescence.

Plant Assets

Long-term tangible assets used in the operation of a business, not expected to be converted into cash within a year, such as buildings and machinery.

Year Ended

Refers to the conclusion of a 12-month accounting period, marking the end of a company's financial year.