If an Unplanned Increase in Business Inventories Occurs at Some

question 84

Multiple Choice

If an unplanned increase in business inventories occurs at some level of GDP, then GDP:

• A)entails a rate of aggregate expenditures in excess of the rate of aggregate production.
• B)may be either above or below the equilibrium output.
• C)is too low for equilibrium.
• D)will decrease.

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Definitions:

Indefinitely

For an unlimited or unspecified period of time, without a predetermined end point.

Accounting Process

A systematic series of steps involved in collecting, recording, summarizing, and presenting the financial transactions of a business.

Interpreting

The process of explaining or understanding the meaning of something, often related to data or information.

Classifying

The process of systematically arranging business transactions or financial statements' components into categorized groups for analysis and reporting.